In the world of small business trying to save money is just as important as making money. There are many hidden costs to setting up and running a business. And when you factor in potential late payments and cash flow issues, things can get even more difficult. Which is why Zervant has compiled a list of 5 easy steps that will help you save money.
Our 5 Tools and Practices How to Cut Costs
Hiring employees is time consuming and expensive. It’s difficult to compete with bigger firms, and their larger budgets, in order to attract the best talent. So once you find the right people you want to make sure you keep them.
Many perks that small businesses can offer their staff:
- Flexible working. Smaller businesses, especially in the digital sector, are renowned for a more laid back approach to how employees structure their working hours. It doesn’t have to be 9 -5 all day, every day.
- Development. There are several studies that show young professionals nowadays are much more enticed by career development opportunities than a big pay packet. Large, hierarchical organisations cannot compete with flat, agile, smaller ones on this front.
And if you do lose a member of staff, don’t worry. Before rushing to recruit someone else, wait a few months. This may seem counter-intuitive but an ambitious employee, eager to develop, may take on the extra work.
If not try using your employees and their networks to find someone. You can encourage this by offering referral incentives. Either way you’ll save money on recruitment costs.
2. Think Differently About Office Furniture
When you first start your business there are many overheads. One of the biggest is all the office furniture that you need. Even a trip to your local Ikea will still have quite an impact on the purse strings.
But why not look at alternative sources for your furniture? GumTree and Ebay are two of the most well-known sites, but a quick internet search provides options too.
Unfortunately, quite a lot of small businesses do not make it past their first few years. So there’s a lot of second hand furniture around!
3. Use a Budgeting Tool
There has recently been a rise in the number of handy, accessibly priced tools that provide you with a complete financial overview of your business. And these offerings are designed specifically for small business and entrepreneurs.
Online invoicing software will help you to take on late payments, by sending out prompt reminders to customers. This will ensure that the payment is always fresh in their minds. It will also save you time creating the invoices. Everything is done in a matter of clicks.
4. Go Green
You’ve probably heard this one before. But going green can still save money. Quite a lot in fact. And best of all, it’s quite easy to do.
Investing in green lighting and buying energy efficient bulbs may cost a little more at the start. But the amount of energy they save you in the long run means they pay for themselves many times over. According to one of the UK’s top energy advice sites, these bulbs use between a quarter and a fifth of the energy normal bulbs do. And they provide just as much light!
Buying remanufactured ink cartridges for your printer is not only good for the environment. It’s easier on your wallet too. Although it’s a simple step, encouraging staff to switch off computers when they go home will also make a difference. As will making your office paperless.
5. Location Isn’t Everything
You should certainly think carefully about where you choose to have your business. Location is important for a number of reasons. But don’t sacrifice everything else for the sake of a desirable postcode.
A good location can be very expensive. According to a recent study the cost of renting office space in the capital is up by 4.3%. The cost of a square foot in the West End is now around £115 per square foot.
With the rise of cloud computing and cloud software it’s never been easier to work with colleagues or clients remotely. There are plenty of free platforms available for routine tasks.
Zervant – Another Money Saving Tool
If you found these tips useful then why not see how Zervant can help you run your business too? With our software you can create and send an unlimited number of invoices, for free! Click below to get started.