Simple Money Saving Tips for a Small Business

With the economic situation in its current precarious state, small businesses need to do everything that they can to save money in order to have the best chance of survival. There are any number of steps that can be taken to save money and every little helps. There are savings that can be made without becoming obsessive and cutting back on essentials.

Savings on technology

It may be very tempting to opt for the latest technologies, but it is important to ask if they are essential. Upgrading software, for example, can be very expensive, but if the current version works perfectly well and meets the needs of the business then the question needs to be asked if a change is really required. Getting the advice of an IT expert will help to avoid making an expensive error. The same applies on items such as company phones, computers and other electrical goods. Upgrading before it is necessary can simply be a waste of money. It is, however, a good idea to look for a good deal on phone services. If you are looking for good deals on phone and internet services, visit uSwitch.com to look for the most efficient broadband provider and start saving today.

Use electronic forms of communication rather than constant phone calls and mail shots. Postage is now fairly expensive and not all companies have a good deal on phone services. Sending emails and e-newsletters is a good way to save money on this aspect of the business.

Negotiate

Those who are purchasing for their businesses should be aware that negotiation on prices is always possible. Suppliers are often happy to give a better price if they can, as they are keen to keep the business. It is important to recognise when there is an opportunity to bring a price down and act on it as soon as possible, as this is one way in which large savings can be made, particularly on big-ticket items.

Savings on running costs

Utility bills can often eat into the budget of a small business. Just as at home, adjusting the thermostat on the office heating can save a great deal of money. This is particularly important for evenings and weekends, when the building is likely to be empty. Motion sensor lights also help to save money and making sure that as much natural light as possible is let in is important. Greener working practices can also save money, so reusing items that are still in reasonable condition is one way to make a small saving. It can also have a positive effect on the environment by preventing used items being sent to landfill and reducing the supplies that need to be ordered.

Effective administration

When running a small business it can be difficult to persuade clients to pay up on time. It is important that they do, as this is the only way to maintain a healthy cash flow. Making use of the services of an umbrella company can be one way to take this worry away. They will deal with invoicing and chasing customers who have not yet paid and will also deal with issues of income tax and national insurance. In the long-term, the time saved by using an umbrella company can also cut overall costs and allow the business owner to concentrate on work rather than administration.

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