How to Cut The Cost of Running Your Small Business
Times are tough for businesses of all sizes at the moment, but small businesses, in particular, have found this past year hugely challenging. Keeping a small business running can feel like an almost impossible task right now, as there are so many different factors you need to consider.
As well as needing to deal with the challenge of running a business during a difficult time for the economy causing reduced income, there is the additional complication of ensuring that your business is COVID-safe to protect both your employees and customers. Juggling these different variables can feel like an almost impossible task, but easing the financial burden on your company can be helpful. Examining your business costs and finding ways to reduce them is an excellent way to ease some of the pressure that you find yourself under right now. Making reductions in your running costs also means that when you return to business as usual you will be in a strong position to build your success. Here are some of the ways that you can cut the cost of running your small business:
The idea of a paperless society is something that has been widely spoken about for many years. However, many businesses continue to use a lot of paper daily. If your business is one of them, ditching the printing and choosing to go paperless could help you to make significant savings as well as help the planet.
Going paperless doesn’t just save you money on the paper itself, but it also cuts the cost of many other areas of your business. Going paperless means that you will spend less on the cost of running printers, buying toner and ink, use of the photocopier will also be reduced, and your postage costs will shrink too. The reduction of all of these costs combined can add up to some substantial savings.
Reduce the Running Costs of Your Vehicle Fleet
Running a fleet of vehicles for your company is a necessary but often expensive task. While your vehicle fleet is essential to keep your business running, that does not mean that you can’t find solutions to make it cheaper to operate.
One of the most significant costs associated with running a fleet is fueling your vehicles. Using small business truck fuel cards is an excellent way to monitor the amount that your company spends on fuel, and also allows you to set limits on how much your drivers can spend on fuel and tracks their mileage. These features give you complete control over your fuel spending and the ability to see precisely how and when your money is being spent.
As well as controlling the amount that you spend on fuel, you may also want to consider switching to fuel-efficient vehicles when your trucks need replacing. Manufacturing eco-friendly vehicles is such a big focus for auto manufacturers right now, so new and improved fuel-efficient models are constantly being introduced. You may now find vehicles that are far more economical to run since you last purchased your trucks, which will help you to make further cost savings.
Don’t Be Afraid to Outsource
Outsourcing is an excellent way to enjoy the benefits of having a professional service on hand when you need it, without the commitment of paying a wage, holiday pay, sick pay, pension contributions, etc. Outsourcing work enables you to get the support you need without adding to your in-house team.
Outsourcing aspects of your work also enables you to benefit from the latest knowledge and skills without paying for training. This is especially useful for roles such as technology and IT support when professionals need to keep their knowledge current and keep track of new technical developments.
As well as outsourcing your IT support, you could consider outsourcing other tasks too, such as data entry, accounts, and the management of your social media pages.
Cut Down on Errors
Sometimes errors cannot be avoided, as everyone makes mistakes. However, repeated errors in the workplace could be increasing your costs. Mistakes in the production process cause wasted materials and damaged productivity. If mistakes are consistently taking place, this is worth investigating to prevent any further wastage. You may be able to resolve these issues with extra training, or perhaps you need to revisit your processes and procedures as these could be unclear.
Reducing costs in your business without compromising on the quality of your service is one of the most effective ways to keep it running successfully in this challenging time.