It’s time to tighten our belts, so this week Anita Brook looks at ways all businesses can save.
With cuts across the board, whispers of a double dip recession are a frightening prospect. Whatever happens, businesses should err on the side of caution when it comes to cash. And, economic difficulties or not, cutting back on unnecessary spending is good practice for any company. Here’s a low down of some of best ways to save:
Use free software: Free software, such as Linux is used by millions, including Google. There are no licence fees and the mainstream systems are supported by volunteers around the globe. http://linux.co.uk/
Pool your buying power: For costs like electricity and insurance consider pooling your buying power with others. By purchasing in bulk you can negotiate discounts – this is especially beneficial if you run a small business. You can either do this yourself on an ad hoc basis, or use the assistance of a procurement specialist.
Swap services: Whatever service you offer, see if you can trade it with suppliers in exchange for their services or money-off. This is particularly useful for start-ups short on cash.
Buy second hand: Sourcing second hand stuff is easy, with the ever-present ebay opening the door to a world of unwanted treasures. Don’t go straight to a shop when you need new IT and phone equipment, sites such as http://www.secondhandusedcomputers.co.uk/ sell a range of used goods, and you can also sell back any old tech you have lying around.
Get money-off for good behaviour: Ask your suppliers if they’ll give you a discount for early payment. If they are under financial pressure, they may well agree to a slight drop in price for swift settlement.
Keep check of your staff: If you employ people, it’s important you keep an eye on what they’re doing when it comes to time and money. Make sure any expenses claimed are genuine. If staff claim for their mobile phones, do random bill checks, that way people are less likely to take advantage in the first place.
When employees are off work it costs your business, damages productivity and puts extra pressure on members of the team that do show up, so keep a close eye on absenteeism. Set targets and reward good attendance.
Audit your business: Many of us let things continue a certain way because it’s always been done like that. Take a step back from your business and consider whether anything can be streamlined. There may be hundreds or even thousands of pounds worth of savings to be made by making staff work smarter, switching bill providers or even changing the brand of coffee you drink.
Cut down on travel: With free video conferencing available through Skype, consider whether travelling to meetings is always necessary. A web cam can cost as little as £20 and if you need something more substantial, investing in video conferencing equipment may soon pay for itself after a few saved journeys – particularly ones overseas.
Get rid of the office: It might seem drastic, but consider whether you actually need an office. If staff can work from home this will save huge amounts of cash and for occasional office use, desk sharing schemes, such as Desk Space Genie http://www.deskspacegenie.co.uk/ can provide a temporary solution. Alternatively, if you have free desk space you can rent it out for cash.
If you are an employer, tightening the purse strings may seem like mean spiritedness to employees, so keep them informed about what you’re doing and why it’s being done. Lead by example and consider some sort of incentive for the biggest saver.
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