The year 2020 will be one forever imprinted in our memory and one which we should be able to take valuable business lessons from, one of which being how to cut down on business costs. Business Insider ran a survey which revealed that 82% of all businesses fail due to issues with cashflow. Whilst we know that the predominant aim of business is to make money it is important that you don’t spend time wasting it. We have gathered some simple and effective tips for you, allowing you to cut down on your business costs.
You may think that this is a factor which removes only a minimal amount from your budget, but it is in fact a simple way to save extraordinary amounts. To send out physical paper prints you will not only require the paper itself, but at least the additions of ink, printing supplies, envelopes and postage. Revolving your company into a paperless business will allow you to cut back on these small, but regular costs, resulting in savings which can be made use of elsewhere, somewhere of more importance! Besides, the world is very much digital nowadays, so why not fit in with the crowd!
Yes, we know this is an obvious method, but it is one which is often overlooked or underachieved. There are many steps that can combine together and create your accurate business budget, such as an evaluation of your expenditure and earnings, but the main factor is to remain achievable. Aiming too high will allow you to fall before you even begin as your conscious mind will be aware of the unreachable target you are setting yourself. Little and often is always the way to go with business budgeting!
Upgrade your office space
By this, we don’t mean upgrade the style and size. We mean upgrade upon the sensibility and productivity, which can also downgrade the cost. If we have learnt anything this year, it will be that working from your workplace isn’t always a necessity. By working from alternate workplaces, such as a home office, a relatives property or even a local coffee shop, you can cut down on rent costs from the large, open plan workspace most business felt were a requirement before 2020 arrived!
Upgrade your technology
Following on from our previous point, having a team working in different places will require a stronger technical connection. It will be beneficial to the entire workforce, as well as important, that you utilise the newest and most dependable programmes that allow your team to feel as though they are working together, whilst working apart, as well as the downloading and regular use of Zoom or Skype calls. This may begin as a costly factor, but it has proven to work more than anyone would have thought with many businesses deciding to allow their teams to continue working from home, even after the pandemic. With real time reminders and alerts, as well as online timesheets, your business can thrive from accurate and up-to-speed working.
After a year of local business unfortunately failing or suffering a large income loss, why not allow them to thrive next year by purchasing your workplace goods from your local seller. Whilst this may work out cheaper for you than it would do if you were purchasing desk stationery from the ‘big guys’, it could also work in a 360° by informing the locals of your business presence, potentially allowing a new wave of customers to arrive at your (virtual) door!
If you are in need of business aid, feel free to get in touch with a member of our supportive Hammonds Chartered Accountants team who are on hand, to lend a hand! Simply give us a call on 0203 007 4990 or drop us an email at and we will be happy to help you and your business.