During an uncertain economy, even the slightest reduction in your business’ running costs can make a substantial and welcome difference to your income. As the future of many sectors remains uncertain, more businesses of all sizes are looking for ways in which to reduce their overheads and make themselves more resilient to potential effects. Small businesses, however, don’t always have the same capacity to make the same changes of their larger counterparts, such as reducing staff costs or merging sites. Instead, they must be more creative.
Here are a few examples as to how small businesses are often able to reduce their running costs, making them more resilient to a difficult economy.
Reduce and Review Software
During the early stages of business development, many small businesses adopt new and exciting software. Or, alternatively, they may be sold certain software products that are said to be beneficial to the type of service they plan to offer. As businesses develop, many of these software options, often which are tied to subscription services, then become redundant or fail to be used enough to justify the cost of a subscription package.
Be sure to review your software costs, considering the work you are able or are now able to do without relying on regular and costly software.
Swap Your Marketing
Facebook and Instagram both launched options for users to support small businesses within their area during the lockdown. Connecting with a greater audience online, especially those in your areas who are eager to support their local, small businesses. Establishing a social media presence, one that allows you to reach a greater community audience is a low-cost alternative to broad and expensive advertising, such as within print media.
Due to the popularity and accessibility of external companies, outsourcing departments has become an excellent way of reducing operating costs within a business.
For small businesses with a large staff, outsourcing a department such as payroll can eliminate the potential risk of costly mistakes while also reducing the time spent processing payments and ensuring tax legislation compliance. There are many reputable payroll services around the UK that are experienced with small businesses, building their packages around a specific client’s needs.
Consider Operational Costs
Your operational costs may not seem immediately high but, over time, they can add up. Not only can you scrutinise your usage, such as with energy, but you can also seek out alternative suppliers who may be able to reduce your rates, even solely in the short term.
Relying on printers, with the associated costs of ink and paper, is extraordinary expensive when compared with digital alternatives. Digitising your workplace is not only more efficient and inexpensive, but it is also safer.
Having a dedicate office or rented office space is often a cost that can be eliminated altogether. Due to advances in cloud technology and video conferencing, the need for a permanent or regular working space is now less often required.
Many small businesses hire spaces early on while they establish themselves. However, once they are more comfortable with their operation and routine, the necessity for a dedicated working space can be called into question.