If you run your own business, then you will know that every penny saved counts towards your bottom-line profits. Many small businesses fail within their first two years of trading so keeping an eye on your costs is imperative if you want to make a long-term success of it.
There may be ways to save money that you haven’t even considered, so we’ve put together a list of things that may give you some food for thought.
Here are 4 ways to help your small business save money and maximize profit.
Save on electricity
Reducing your electricity consumption not only helps the environment but can also make a big difference to your running costs. Motion sensor lighting works particularly well in larger premises and is a great way to ensure that you are only using what you need. Built-in sensors turn lights on and off so you know that you aren’t wasting electricity (or money.)
If you have a host of computers and printers or other office equipment that use power, try to implement a nightly switch off policy across the board. You might be surprised at how much money you could save over a year just by ensuring that electricity isn’t being unnecessarily used.
Employ a firm to deal with your taxes
Although there will be a fee involved, hiring a firm of accountants and registered tax agents to deal with tax rebates and such like could save you a lot of money.
Many businesses are not aware that they can claim tax relief against certain things or that rebates can be retrospectively claimed so, if you haven’t already done so, contacting a professional could save you a lot of money.
Similarly, it may be worthwhile having an accountant deal with your tax return each year, particularly if you find it overwhelming or have a tendency to submit it late. Not only will you save a lot of time and unwanted stress, but it could also make your balance sheet look a lot better.
Are you getting a competitive deal?
If you have been using the same suppliers for a long time and it’s working well, then it’s a good idea to try and stick with them. However, you should also find out whether the rates you are being offered remain competitive.
Find out if existing prices can be bettered or whether they can perhaps supply alternative products that are comparable in terms of quality but with a lower unit price. Good business relationships are, without a doubt, worth keeping, but you also need to make sure that you are getting a good deal. Â
Do you have the right amount of staff?
It’s important to review staffing requirements from time to time to make sure that your company is running as efficiently as it should. Perhaps taking on additional staff, for example, would allow you to focus on bigger contracts. Maybe your current set up can be reduced, or existing staff able to take on additional work.
Keep an eye on things, and make changes where needed. This will ensure that your growth potential isn’t being hindered, and your profits are as healthy as they can be.