Photo by Fabian Blank on Unsplash
The fallout from the COVID-19 pandemic has been harsh on the economy. Businesses have been unable to open, some have had to close. One thing is for sure, for those businesses that have managed to survive, money is going to be tight and cost control needs to be high on the agenda.
There are many ways that small businesses can save money and cut costs. Each one in itself won’t make a huge difference, but taken together, they can have a massive impact on your bottom line.
Keeping costs low is not just good business sense, it will put you in a better position to deal with any future unexpected situations going forward.
Technology
Computers/Laptops
Good tech is necessary but expensive. Instead of opting to buy cheap and un-branded tech that is unreliable and will need to be replaced relatively quickly.
Be smart about where you buy your equipment. Try and wait until Black Friday/Cyber Monday if you can or ask about corporate discounts.
Leasing may also be an option as you are guaranteed the latest products and can keep monthly costs low and predictable.
Phones, Mobiles & Call Packages
If you’re using traditional landlines, you’re probably throwing money away. Look to implement a VoIP system that allows you to make all your calls over the internet for a fixed cost. VoIP has the added advantage of being scalable and cost-effective, so you are only paying for what you need when you need it. It provides seamless connectivity for remote workers too. Instead of providing company smartphones, you can incentivise people to use their own and simply pay for a portion of their phone contract. Or you can transfer them to a sim only contract with something like SMARTY SIM contracts and take advantage of a low monthly payment for data, texts and minutes.
Printing
The quest for the paperless office has been going on for decades. Reduce the amount you print as much as you can. Documents can be stored and filed online, reducing the need for vast amounts of paper. You’ll be saving on paper, ink and power. You’ll also be doing your bit for the environment too.
Cloud Computing
Your business is probably already using various cloud technologies in the forms of collaboration apps, conferencing and social media. By moving your data completely to the cloud, you could save on hardware and support costs, as well as the need to recruit and hire specialist IT staff to run them.
Freemium Software
There’s an app for everything these days and you’re probably already using a few of them. Many of the more popular software providers provide freemium versions of their software that give you a good level of functionality. It is their hope that as you grow, you will simply move to their paid subscription rather than move to a different provider. Instead of spending hundreds of pounds per month on licenses, look at what features you really need and see if there’s a free option that will meet your needs.
Some of the most popular versions include:
- Email and office – GSuite
- Project Management – Asana, Trello
- Communications – Slack
- Marketing – Hubspot
- Accounting – Wave
Outsource Non-Essential Business Functions
If you’re lucky enough to have grown to the point where you need additional resources in areas such as payroll, HR and marketing, you could look to outsource these for a fraction of the cost that it would take to employ someone internally.
You can use specialist companies or freelancers to outsource your non-core functions to. By outsourcing to professionals, you can be sure that you are working with highly trained professionals who are experts in their field and up to date on the latest accreditations.
Corporate Travel
Travel and accommodation can really start adding to your costs. Where possible, cut down on corporate travel by using video conferencing more. Always ask yourself if a face to face meeting is necessary. You’ll find in most cases, that it can probably be done in another format.
When travel is absolutely necessary, try to book in advance to secure the best rates and make sure that you are signed up to any loyalty schemes that might get you free hotel stays or tickets. Many train companies and airlines are cheaper to travel on the further in advance you book.
Set realistic budgets for your staff, especially if they are booking their own travel and accommodation, you don’t want people spending unnecessary amounts on luxury hotels and first class travel when money is tight.
If there is a lot of corporate travel and accommodation to be booked, look at using a specialist travel booking company. They often have negotiated rates with the major train companies and hotel chains. Even though they will charge a fee, the amount of money you could save would be worth it.
Alternatively, centralise the travel booking function in your company. One person dealing with everything can ensure a coordinated approach to budgets and loyalty schemes.
Use Price Comparison Sites
It’s very easy to stick with the same provider for our bills. After all, it’s just too much hassle to change companies for the sake of a few pounds right? You will be surprised at how much money you don’t need to be spending.
Check to see if you could reduce your costs for utility bills, insurance and business banking.
Popular sites include Money Supermarket and Compare The Market.
Introduce A Remote Working Policy
Working from home has been the norm for many people during lockdown and when surveyed, only 24% of workers said that they wanted to return to working in an office full time.
Remote working has been shown to be good for productivity and employee wellbeing. By offering it as a perk to employees, you can save money on office space. You don’t have to ditch the office all together, but if space is at a premium then having a percentage of employees working from home every day can reduce the need for additional space.
Consider Hiring Interns Or Placement Students
When utilized correctly, an intern or university placement student can be a great addition to your business while saving your money. That doesn’t mean that you should try and get free labour or take advantage of someone. Though they can be a lot cheaper, they still need to be paid a fair wage and your need to be able to provide them with development opportunities within the role.
You will get an employee that is enthusiastic and keen to learn and they will get a chance to gain industry experience. Great for everyone involved.
Use Digital Marketing Techniques
If your company is still relying on old school marketing techniques such as printed advertising, billboards and flyers, it’s time to update your marketing strategy Social media and search engine advertising can be targeted to your ideal customer, for a fraction of the cost and greater ROI.
Negotiate With Your Suppliers
A good supplier will expect companies to try and get the best deals possible. Discuss potential deals with your suppliers for continuing to buy from them. This can be a flat discounted rate or a sliding scale of discount based on the mount that you but from them.
Offer To Swap Services With Other Businesses
Other businesses are in the same position as you and will be looking to cut costs at the moment. Why not broach the idea of a reciprocal deal. For example, a PR company could provide PR support for an IT company in exchange for IT support and maintenance?
Get Sponsorship For Your Events
Corporate events are a great way to generate business leads and raise your industry profile. But a good event can be expensive. Once you’ve factored in venue, advertising, refreshments and marketing costs, you could be looking at a hefty bill. By allowing your event to be cosponsored, you can split the costs while still maintaining the benefits of running a successful events calendar.
Rent Out Unused Office Space
If you have a lot of office space that isn’t being used, then why not put it to good use by renting it out to a small startup or a group of freelancers? You’ll be making some extra money while also supporting other small businesses in the area.
Make The Most Out Of Your Industry Memberships
Many companies join their local Chamber of Commerce or Federation of Small Businesses to attend events and for business development opportunities. Take a closer look at the perks of your membership. You’ll often find things like member discounts or free initial legal advice, so if you needed the support of copyright lawyers or were looking for other types of help to ensure you can develop your business property, industry memberships can ensure you always get quality results. Many people think that to cut costs means to severely hinder one’s business, but it’s not actually the case when you have the right industry memberships. Make the most of your membership fee and save even more money.
