If you own an SME, reducing costs will become one of your external struggles. You’ll always be looking for ways to cut your expenses and save yourself money in the long run and fortunately, you’ll be able to increase both profits and efficiency levels with the right practices.
With a whole range of options for cost saving, there’s plenty to consider and in no time at all you’ll be paying less to keep your company up and running. Let’s take a look at some of the best ways to cut your expenses and save your business money in 2016.
1. Enforce a paperless approach
In today’s day and age there’s simply no need to avoid a paperless approach and surprisingly, you can save a significant amount. There’s lots to think about too. For starters, you’ll be able to scan documents and send them by email to other employees.
You could also consider a Cloud storage space, where everyone with the relevant permissions can access the work they need. This is both secure and efficient. By adopting a paperless approach for your business and enforcing it across the broad, you’ll be able to reduce costs associated with both storage and printing – It’s not difficult to implement either.
2. Better manage the company expenses
Do you have a number of employees with access to company credit cards to pay for expenses? If so, managing this can be difficult and without the right restrictions in place, you can find yourself overspending every month.
Rather than let your employees run wild and spend at their will, try to agree limits and monitor how much is coming out of the accounts on a monthly basis. This should help you save plenty of money in the long run and simply requires you improving the management side of things.
3. Opt for electronic invoicing
If your business is always sending out invoices, there’s a small fortune to be saved by switching your practices to electronic. Similar to the idea of being paper free, you’ll be able to save costs on printing and sending your invoices – email doesn’t cost a penny after all. Plus, this is a really simple change. Just check with your clients before switching and inform them of your plans.
4. Outsource your requirements
If you own an SME there’s the chance you’ll have multiple departments working both individually and together to get towards an end result. However, you don’t always have to go down the route of hiring staff for the workload. Instead, why not consider outsourcing?
For instance, by reaching out for your company’s marketing you’ll pay a set fee, but in return receive the expertise of multiple employees. This is cheaper than covering every job position in your company.
5. Become eco-friendly
Adopting an eco-friendly approach is another crucial way to saving money and whilst you’ll likely need to spend a little to start with, the benefits soon begin to add up. There are a number of great ways to improve the eco-friendliness of your company too – such as switching your energy supplier, installing double glazing, fitting insulation or adding renewable technology. This solution is best for companies that own the property themselves, especially as there are grants and funding opportunities available to assist with the initial outlay.
6. Grab a business mobile deal
In the modern business world, mobile phones are a vital part of everyday life. Smartphones especially can prove extremely handy and with the opportunity to access emails, documents and Cloud storage on the go, there’s no reason to avoid them. However, many business owners are still using personal contracts, whereas there are better opportunities to choose a dedicated business deal.
Some of the key reasons to choose a business mobile contract include:
- You’ll receive a dedicated account manager. They’ll look after your account and ensure you’re on the most cost effective tariff.
- You’ll be able to receive a subsidised rate for the handset. If you want business mobiles for your employees too, there’ll be a kit fund whereby you can choose what handset your staff receive.
- You’ll be able to better manage your expenses, as multiple phones can be added to one bill. This will give you the opportunity to find out exactly what’s being used.
- You’ll have the opportunity to choose a shared tariff, where allowance is shared among your employees.
- You’ll have the chance to reduce the cost of calling premium lines and international numbers.
- You’ll be exempt from paying tax and NICs. Just be aware this would only be effectual if each employee only has access to one phone.