How to save money as a small business
Cutting back on costs is a vital part of keeping any business running successfully, particularly small to medium-sized companies (SMEs) and startups. Even the seemingly small expenses quickly add up, burning a hole in your pocket – and budget – without you even realising it.
Regardless of whether you’re just getting started or just want to reduce your expenditure, it can be tricky knowing where to start and what is actually effective. After all, you don’t want to mindlessly cut costs. We look at how you can save money and keep your small business on the right track with ease.
Keep stock in a storage unit
Office space and warehouses are a significant regular expense – one that many small businesses simply can’t afford. Storing some of your larger pieces of equipment in a storage unit is significantly cheaper. While you will have to pay a rent on a unit, it means you can have your employees work remotely or rent out a much smaller office as you won’t need as much space.
Some of the many business items you can put in storage include:
- Filing cabinets and documentation
- Surplus stock
- Tools and equipment that aren’t needed every day
- Old machines that you want to sell or repair in the future
- Out of season items you want to save for later
- Cleaning supplies
Is it safe to keep my items in a storage unit rather than an office?
Security is a prime concern for businesses, particularly when expensive equipment is involved. Our units are individually alarmed and are monitored with 24 hour CCTV; by choosing Cubic Storage, you can be confident that your items are safe and secure all year round.
Encourage remote working
Remote working is a great way of cutting costs. This doesn’t mean leaving your team to get on with your work, but rather investing in cloud-based storage systems and chat software designed specifically for businesses. By doing so, you can cut costs without losing productivity as you can keep track of what your team is working on.
This style of working goes hand-in-hand with having a storage unit, as you can put your essentials and stock in there while working completely from home. You won’t overload yours or your employees’ homes with stock, creating a clear balance between home and work life, while cutting costs.
There are a plethora of benefits to having a remote working team:
- You’ll save money – You won’t have to worry about paying rent and the bills that come with having an office, including business rates, electricity and water bills.
- You can enjoy increased productivity – Working from home actually boosts employee morale and productivity, meaning your employees will work harder while you cut back on costs.
- There’s no commute – As there is no need to come into the office, you can hire anyone, anywhere, making it easy to find people with the correct skillset. Having no commute helps ensure a healthy work-life balance, thus boosting morale and company loyalty. Cutting back on costs shouldn’t come before your employee’s happiness, after all.
- It’s better for the environment – By staying at home, you don’t waste energy and cut back on the CO2 emissions caused by cars.
Cut back on non-essential outgoings
It’s a wise idea to look at exactly what you’re spending, particularly when it comes to regular outgoings. For example, some industries invest heavily in trade magazines and other subscription services. While they may be helpful, you should review these and look at online resources instead if you need to pinch those pennies.
Other costs to look at include:
- Transport – Rather than spending on trains and hire cars, investigate whether your team can have video conferences with clients instead. So long as these are clear and professional, they can be just as effective.
- Advertisement – While marketing is essential in getting your company name out there effectively, look at what is working for your company and what isn’t getting the results you need.
- Stationery – It’s the small things that really add up, which is why stationery and printing can take up a significant chunk of your budget. Go paperless or at least reduce the amount you print to save energy while also cutting back on the amount you spend on printers and ink. Buying wholesale items is cheaper, making it more affordable to buy a single bulk batch of paper and other stationery items than it is to buy little and often.
Barter for goods and stock
Don’t be afraid to look at other suppliers to see if you can get a better deal. Use these tips to ensure you get a great deal on high-quality items rather than going for the lowest price you find:
- Do your research on the quality – You don’t want to focus on getting a really cheap item if the quality is not up to standard, so finding the acceptable compromise between quality and price is important. Look for a great deal on quality supplies rather than picking the cheapest or the one you currently use
- Buy wholesale – You can get a great deal by bulk buying and using specialist trade wholesalers, especially when compared to buying small batches of supplies.
- Get multiple quotes – This way you can barter with confidence and compare each company. Take your time to discuss the best deal possible, taking note of the quotes rather than accepting that which seems like a good deal straight away.
- Get recommendations from other small businesses – While your direct competitors may not be the most helpful, you can reach out to other small companies to see if they have any recommendations or reviews.
Employee costs are likely one of the biggest business expenses for your business, albeit a very essential one. Next time you’re thinking of hiring someone, consider whether you can delegate tasks or spread the workload amongst your current team instead. You don’t want to put too much pressure on a single employee by adding lots of additional tasks, so make sure you consider the current workload to see who can realistically handle it.
Keeping control of your spending is a vital part of not only keeping your business afloat but maximising your profit. If you’re interested in reducing office rental costs, check out the incredible storage units from Cubic Storage. We offer an array of units in various sizes to suit your needs.