There are many ways to reduce costs or save money in a business. The most important thing to remember is to quantify what you “don’t know you don’t know”. Ensure you have a budget, you’re closely monitoring your income and expenses, and you regularly set aside time to educate yourself in areas that affect your finances. Sticking your head in the sand or ignoring areas that look like a big unknown is not a long-term solution. However, armed with the salient facts and where your money is going, you’ll be able to make the best decisions for you and your business now and in the future. And remember, there is always someone in your network who can connect you to that expert adviser.
- Negotiate better deals with suppliers: A quick way to save money in your business is to improve the terms you have with your suppliers. This can be done by comparing prices from different suppliers, asking for discounts, or negotiating longer payment terms. For some of these, where you have existing relationships, you’ll want to do them yourself. For the rest, there are brokers and experts who will do better deals. For both insurance and energy, ask me about the brokers I use. As an obvious major cost, you might consider renegotiating the terms of your premises lease or moving premises altogether. Either way, assessing the long-term financial risks inherent in your premises, is key. For example, a client of mine found premises where the heating and cooling plant was nearing the end of its life. Of course, the estate agent details didn’t say this, but I was able to draw the client’s attention to the fact that they would be liable for replacement, and soon! I negotiated that the landlord would replace the plant before my client moved in saved them nearly £1m.
- Reduce waste: Another key area to consider is waste. If you’re not sure of the status quo then it’s time for an audit. What are your recycling levels like? Could you use less energy or water? Don’t forget that time is a resource that can easily be wasted too! Could your work processes be more efficient? Could you automate repetitive tasks? With the advent of AI and simple automation platforms such as Zapier, technology is your friend when it comes to saving time (and money!).
- Increase revenue: Alongside reducing your costs, it’s essential to look at how you could increase your revenue. Of course, putting your rates up is the very simplest way to do this – it’s surprising how reluctant businesses are to do this but in fact, how rarely it has a negative impact. You could also do this by increasing your sales to existing customers, expanding into new markets and attracting new customers, or by offering new products or services. Find ways to connect with and collect feedback from your customer base to understand what problems they have – then offer them products and services that provide a solution. I know some of these things might seem basic, but we all need reminding of the basics sometimes!
- Reduce employee turnover: An often-overlooked way to save money is through improving employee retention. As a first step, ensure you are offering competitive salaries and benefits, creating a positive work environment, and offering your employees attractive opportunities for professional development. It’s worth remembering that the cost of recruiting to replace a lost employee is far greater than that of retaining the ones you already have.
- Take advantage of government programs: Research or ask around your network. There are likely to be many national and local government programs that could help you save money or access funding, for example, grants, loans, tax breaks, or other forms of assistance.
Need help to quantify what you “don’t know you don’t know” about your business premises?
If you are currently assessing where you might find cost savings in your business, let’s talk. I have two ways I can help:
- My online courses. At just £275, the question you have to ask yourself is: is it worth the investment to upskill and mitigate further risk? Seems like a no-brainer to me! In fact, I’m so confident I’ll save you money down the track, that if you don’t save multiples of your investment in the course in your next business premises transaction, you can have your money back. Click here to find out more.
- My lease tutorials. This is your opportunity to mine my brain one to one, for everything you need to know in order to negotiate the right lease terms for the right premises for your business. Click here to find out more.