With one of the worst recessions on record looming, small businesses across the UK are looking for ways to reduce their overheads and increase their profitability. Below, we’ve put together some cost-cutting measures that should help you hold onto more of your money…
Outsource everyday responsibilities
One of the simplest ways to begin a cost-cutting exercise is to look for services that can be outsourced to third-parties. This, in turn, means you can lower your headcount and associated costs with hiring employees, though you should take into account the possibility of redundancy pay. There are a number of UK facilities management companies that can provide everyday services such as office cleaning, security, grounds maintenance, and hard facilities management such as office refits and retail relocations. Outsourcing cuts costs.
Say goodbye to paper
Cutting down paper is not only good for your company’s bottom line but for the environment, too. When you do need to print, print double-sided by default, use secure electronic file exchange services for important documentation and reuse waste paper to make notes. You should also tighten margins and shrink fonts, and ask for your name to be taken off direct mailing lists to reduce recycling costs. If possible, you could aim to go entirely paperless.
Let staff work from home
The coronavirus pandemic has taught us that telecommuting can be effective when used in the right way. According to one report, more than half of all UK and US workers hold a job that can be conducted from home, and a separate study shows that 90% of workers want to be able to work from home. With fewer staff in the office, you can move into a smaller site, and lower your electricity and insurance costs to boot. What’s more, telecommuting is known to increase satisfaction and productivity, lowering staff turnover and driving increased sales.
Redesign your office space
Over the years, companies have made great progress in making their offices more efficient, and according to one study, the average office lease now offers just 180 square feet of dedicated space per worker. Shrinking your footprint is one of the best ways to lower your monthly rental expenses. As well as redesigning your offices, encourage the use of laptops and mobile devices, create collaborative working environments and consider a hot-desking policy if you know that some of your staffers are going to be working from home more often.
Investing in a renewable solar energy plan, such as those offered by Stream Energy, can help you reduce your personal carbon footprint and combat climate change while also significantly lowering your utility bills.
Upgrade legacy software
It may seem counterintuitive to splash out on expensive software upgrades, but the truth is that your legacy platforms are holding you back. Those old machines and desktop protocols are not only slow, limiting employee productivity, but they’re a risk to your cybersecurity. Now is the time to make the investment in more energy-efficient and speedy computers, and look to cloud-computing software alternatives that allow you to operate anywhere in the world.
Pay your invoices early
Finally, be sure to pay off invoices in full as soon as you can comfortably do so. Some firms offer small discounts to clients who can pay ahead of schedule – even if you’re only netting a 5% discount, that means a month free every 20 months. Speak to an accountant and ensure that paying early won’t impact your cash flow. Remember early payments mean you can build a better relationship with your creditors, and reduce the chances of late payment fees.
Do you have any other cost-cutting ideas? Let us know and check back soon for more.