Looking where to save on costs is hard. We all know there are nice to have’s in your business. The frills and luxuries that make it all worthwhile. We are all recovering from lockdown and the pandemic impact on our businesses. Now there is a need to evaluate where we are spending our cash.
Here are some areas that you can look at to start to reduce your overheads:
Lower your office space costs
With so many people working from home, this is the ideal time to evaluate where you can trim back on those expensive reception areas, empty office and boardroom spaces, and individual offices.
If you have an option to chat to your landlord about trimming back office space, now is the time to do so. If not, consider sub-letting some space to complementary businesses that can share expenses like reception, kitchens, boardrooms, etc.
Many companies are entirely mobile and off-grid from an office space point of view. There are so many opportunities to set up your staff to be home-based, super-efficient, and productive to save you money in the long run.
Cutting staffing costs
Unfortunately, there have had to be staff cuts for most businesses to survive. Try to use freelancers or contractors to do specific jobs. You can pay per job without the expenses of leave and perks. What about family members or even graduates who are keen and willing to get involved and learn the ropes at a reduced rate.
Bartering for goods or services
There is always someone who needs your product or service. So consider a trade exchange or barter for the goods and services you need. You can save on tax, and the cost of business is also significantly reduced as you barter at cost.
Cut back your fleet
If you have company cars, vans, or transportation, consider what the trade-off would be to sell and outsource. If you have a vehicle and driver, why not establish them in their own business and hire them to do your work. This way, they can take on other clients, and you get out of the maintenance you need to do on the vehicle.
Renegotiate your supply costs
While everyone is getting back on their feet, it is a conducive time to renegotiate cost prices on your goods and services. Don’t be afraid of walking away from the table if the deal is not good enough. There are enough suppliers out there who would love your business.
Bizcash is here to assist with your business cash flow, save on costs and to help you grow. For more information on our Invoice Discounting or Business Loan products, or arrange for a demo on the financial dashboard, get in touch here. Follow our social media pages here for tips for small businesses.