5 Small Changes to Cut Your Business Costs & Improve Profitability

5 Small Changes to Cut Your Business Costs & Improve Profitability

Starting and running a small business can be rather expensive and company owners are constantly on the look out to cut costs and improve ROI without damaging the service or product they provide to clients or customers. But unbeknown to many, cutting costs doesn’t have to be so painstaking, in fact making a few small changes can make a huge difference meaning you can benefit for a reduced expense bill whilst your customers are none the wiser.

Check the following 5 small changes that you can make to everyday business practice and reap the financial rewards now and in the long run…

Save Money and the Planet

Energy efficient business practice can make all the difference to office management costs and travel expenses. Use a programmable thermostat to regulate and manage heat in your office space, this thermostat can be set to switch the central heating system in your commercial property off during out-of-office hours, and can be turned down by a few degrees during lunch hours and midday temperature highs. According to Energy.gov, for every degree reduction you can save 1% on your energy bill.

You can also invest in a GPS system to accompany members of your team on appointments outside the office, live traffic updates ensure that mileage is boosted on every journey and your fuels costs are dramatically reduced.

Pay Up Earlier Than Usual

Paying your invoice earlier than usual can unlock a series of discounts and bonuses from certain suppliers. In fact, some suppliers provide up to 2% discount when invoiced payments are settled within ten working days.

Shop Around for a Better Deal

Commercial office space can be notoriously expensive, especially when business rates are incorporated into your monthly outgoings, so why not shop around for a better deal? Whilst the upheaval of moving your entire business to a new premises can be a real challenge, this short term stress will pay dividends if you secure a cheaper space. Many new developments offer great deals for tenants, whilst discussing a move may just give you some room to renegotiate better terms and lower rates with your current landlord. The same applies when kitting out your new space, shop for second-hand furniture to unleash real savings!

Reduce Your Tax Bill

There are a number of deductions that businesses of all sizes can take advantage of and reduce their tax bill in the process. By simply researching your options with a little help from your accountant you can see the amount of tax you pay on a monthly basis diminish. Tax bill deductions can be harnessed on everything from new business purchases to eco-friendly company vehicles.

Telecommute to Cut Small Business Expenses

If you are really serious about cutting the long-term costs of running your business then why not consider a proportion of your workforce telecommuting or working from home? Not only will telecommuting allow employees with children better manage their working day, it will also save you money on energy costs, equipment and office space, allowing you to invest in a smaller and cheaper base for your business.

Saving money, especially during the early days of your company, can make or break businesses of all sizes and by having a savvy outlook when it comes to expenses you can improve profitability and keep everyday practice that bit more manageable. Start small, save money and watch your business grow.

As well as assisting small businesses with her blog advice, Brittany Thorley works for Think Big Comms providing ethnic marketing and business solutions for professional Polish communities around the world.

 

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