Top 5 tips for saving money
Money saved for your business goes straight to your bottom line. By following our simple guide to reducing costs, you can assure that your business stays profitable.
- Do what you do best and outsource the rest! It's a good catch-phrase but it's also good advice. Don't waste your valuable time doing stuff that you aren't good at. Outsource or delegate these jobs; value your time.
- Always get two or more quotes when buying something. Often, as a business owner, you are asked to make decisions on the cost of something for the first time. Get quotes from a couple of different suppliers because it gives you a feeling for the market and keeps suppliers competitive.
- Don't be 'too English' to negotiate. Ask the most valuable 8 words: 'is that the best price you can do?' I am consistently amazed at what you can save. I often say to my team that the first time they buy something in a new role in the company, I will split with them the savings that they make. After that, I tell them: that's what I expect. It's a great way to teach people to negotiate.
- Control your professional fees. Be sure you know what your accountants, lawyers, contractors, and recruiters are going to deliver at what cost and when and hold them to these arrangements, avoiding expensive bill creep.
- Know the grants, tax breaks, schemes, and free advice available for you and your business. I have been surprised by how much good advice exists for free on different websites such as BIS or the HMRC, and how much you can learn or find out about by asking people you know.
BONUS TIP: Remember the adage that £1 on your bottom line is worth £10 on your top. Often, the only thing you know when you start your business or enter a new trading month is what you will spend - not what you will earn. Keep on top of your costs, know your P&L inside out, and review it once a quarter as if you were new to the company. Ask yourself if you're happy with what you are spending, and if not, look into what you can change. Typically, I find that you can reduce your cost base by 10% like for like year on year.
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