Top Tips to Lower Your Businesses Running Costs and Save Your Business Money
Posted on 8th August 2022 at 15:20
In a changing business world, there has never been a better time to take stock of your entire indirect overhead spend and see where you stand. Reducing business costs can benefit a business, potentially providing improvements such as improved service, reduced admin and lower costs.
Minimize Spend on Utilities
Owning or renting a business premises always include utility bills for your business. Sometimes it can be easy to unwillingly fall into expensive contracts. There are two key methods to reduce spend on utilities; firstly, look at limiting use to cut down on spend; secondly, you could change to cheaper suppliers.
Once you know you’re with the best supplier for your business, you should consider how you pay for your services. Some suppliers might offer discounts to businesses who choose for direct debits or pay invoices early. Even for small discounts, these can accumulate over time and can make a difference.
Being an energy efficient business can held reduce costs through services such as electricity and gas. To reduce electricity usage, small changes such as switching to energy efficient light bulbs or turning off equipment when not in use can help lower electricity bills.
Reducing gas usage can sometimes take more effort when compared to reducing electricity use. Sometimes reducing gas usage can take longer to have a noticeable impact. Some examples of how to reduce gas usage include improving insulation to reduce the need for heaters in the winter. Alternatively, if your gas rates are higher than your electricity rates and you can’t leave your current gas contract, then electric heaters may be a more cost-effective alternative.
Maximize your employees’ skills
When looking to maximise efficiency for the business, it can be important to maximise your employees’ skills. Assessing the current usage of your employee’s experience and skills can potentially result in lowered business costs.
By employing people in the wrong positions, you could be losing money. By giving responsibilities to the employees with the most skill and efficiency in those areas can result in improved work efficiency. It’s often necessary for one person to be responsible for various tasks but consider exchanging some of those tasks with another individual who shows greater efficiency.
Modernize Marketing Methods
Using modern marketing methods can help promote your business and sell your product(s) and services. However, there are always cheaper alternatives that you can explore when looking to reduce business costs.
Some examples include networking with customers, doing more marketing work in-house, building a customer email list, or asking customers to write reviews. These are all low-cost methods that allow you to continue to market your business whilst reducing business costs.
Business Cost Reduction Programmes
Finally, cost reduction programmes can be used to find new and innovative methods to reduce your businesses costs and potentially save money. Cost reduction programmes, such as Colbea’s ‘Colchester Business Cost Reduction Programme’ will partner you with Auditel Connect to help you review your overheads and identify current usage and spend, and highlight potential opportunities for improved service, reduced admin, and lower costs.
This programme is for businesses with premises in Colchester, Essex for businesses under 250 employees, and in any sector, but would be more beneficial to established businesses (i.e., those who have been trading for at least one year). This is an ongoing programme that attendees can join onto at any time. The cost review diagnostic report will be completed and provided by Auditel Connect.
More information about the above training programme can be found on the Colbea website below.
Commercial Director - Auditel Connect
“Auditel have been helping SME’s since 2000, including a number of Colchester businesses and charities, and are happy to discuss your specific situation with no obligation. In a changing business world, there has never been a better time to take stock of your entire indirect overhead spend and see where you stand.”
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