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5 Ways To Save Money On Your Business Overheads

The last year has been tough on many business owners. The UK is currently battling the worst recession in three hundred years. With incomes tightening and profits falling, this might be a good time to start reducing your outgoings. Here are five ways you could save money with your business. 

Trade Accounts

Take time to list out all of your suppliers. You may have one major supplier or several companies that you buy stock from. If you are a repeat customer, then your supplier will wish to retain that business. Speak to them about the possibility of opening a trade account to allow you to purchase at reduced or wholesale prices. Many businesses may already have this option available for you. If you are a business such as a joiner, plumber, or builder, then a Tool Trade Account can save you money in the long run. For office-based companies, a trade account with a stationary company might be useful. 

Work Remotely

With a lot of offices closed in 2020, many businesses began to conduct work outside of their usual premises. If you are spending a lot of money on rent, mortgages, or utility bills then consider whether you could conduct your business elsewhere. If you and your colleagues can work remotely and are set up for home working, then there is no reason this couldn’t continue. Some colleagues may welcome the flexibility it might give you all. 

Go Paper Free 

According to Restore Digital, the average paper worker uses 10,000 sheets of copy paper each year. This is roughly four boxes of paper or the equivalent of £40. If you make a concentrated effort in your company to go paper-free, then you will save on average £40 per office worker, not including the cost of printers and their upkeep. Going paper-free is also a way of generating publicity as the environment remains a central concern for many. 

Rent Instead Of Purchase

If you use a vehicle tracking system you will quickly be able to tell how often your business-owned vehicles are out on the road. If you only use your vehicles infrequently, then consider renting rather than purchasing vehicles. Renting may sound expensive but can cost less in the long run as you do not need to maintain the vehicle or pay for any of its annual costs. Consider whether there are other items that your business only seldom uses. For instance, it may be that you can conduct most work on standard laptops but occasionally need more computing power. Computers can also be hired by IT supply companies on a similar basis to vehicles. 

Downsize Your Team

Finally, redundancies are a difficult process and no small business owner wants to undertake them if they are avoidable. However, they are occasionally unavoidable. A colleague can find new work. If your business goes bankrupt, many people will lose their job, yourself included, and all of the assets that you have built up will dwindle. Think seriously about how you can restructure your team to maximize profits and ensure the longevity of the company. If your business has had to switch its focus, responding to the current climate, then workers may no longer be generating you enough profit to afford to keep them.

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