Are you looking to save money on your business expenses this year? This is always a worthwhile resolution, particularly during a time when costs are so high. Additionally, saving money can free up funds that could be invested in key areas, such as employee perks. So, what are some of the best ways to make savings this year without negatively impacting the business?
Review & Renegotiate
The first step is to review your regular expenses, including any minor ones. You should immediately be able to find ways to make savings, whether this is eliminating an unnecessary expense, such as a coffee pod subscription, or finding cheaper alternatives elsewhere. You should also negotiate with suppliers to see if you could make any savings – do not shy away from switching if you can get a better deal elsewhere. If you have company cars but only use them occasionally, you could make savings with temporary car insurance so that you are only paying for when you use the cars. You could also sell any equipment or furniture that you have in the office but no longer need.
Consider Hybrid Working
Many businesses have settled on hybrid work in recent times, which can bring benefits for all parties. It can also be intelligent from a financial standpoint as you will significantly reduce your energy usage and can cut back on office supplies. It also works out financially for employees as they can make savings on their commute. Some businesses are even finding that they can downsize their office space as they do not need a full office at any time.
Smart Recruiting
It is often an overlooked area when it comes to saving money, but smart recruitment can save your business a lot of money over the years. Recruitment is reported to cost £3,000 per staff member, so you want to recruit the right person and keep them happy. A skills audit can help you identify areas where you need to recruit, and recruiting smart young professionals will be more affordable – a training programme is an effective way to attract young professionals to your business. It is then a case of making this a tight-knit team and looking after their well-being to ensure employee loyalty – this can also help to maximise productivity.
This post should give you a few ideas for ways to save money this year. Smart financial management is always key in business, particularly during a time when costs are so high. When you can make savings without negatively affecting the business, you can improve your bottom line as well as free up funds that could be reinvested in other key areas of the business for growth. This should help 2024 to be a rewarding and lucrative year for your business.
