Five simple ways to save your firm money

Maximising profits is about more than simply increasing sales levels. If you want to ensure your business has a healthy bottom line, you’ll also need to find ways to keep your spending down. With this in mind, here are five simple suggestions that could save your firm money.

1) Bring your utility bills down

Utility bills can be a major headache for companies, so it’s no surprise that research conducted earlier this year by the Federation of Small Businesses found that 90 per cent of small enterprises were looking for ways to become more energy efficient. Fortunately, there are some relatively straightforward ways to bring these bills down. For example, installing energy efficient lighting and equipment could help you to cut your electricity bills. It’s also worthwhile looking at your plumbing systems. Fixing any water leaks can save you money, and your firm may benefit from using water conserving solutions. On their website, water solution specialists Arrow Valves state that automatic flow limiting valves can be used to reduce water usage in wash basins, dishwashers, urinals and a range of other applications.

2) Consider allowing remote working

If some or all of your employees are able to complete their tasks from home, you could save cash by introducing a remote working scheme. This approach, which allows you to cut the number of desks in your workspace, may enable you to fit into a smaller office. Ultimately, this could be an effective way to lower your overheads and it may take some of the pressure off your firm’s finances.

3) Make sure you get the best deals from suppliers

Especially if you’re busy, you might find yourself rushing into deals with suppliers. However, if you’re to keep full control of your expenditure, it’s important to scrutinise all deals before you agree to them. Whether you’re looking for insurance or stationery, make sure you scour the market and don’t be afraid to ask for discounts. You may also be able to save your company money by bartering goods or services with other businesses.

4) Control your inventory

Another way to bring your expenses down is to keep firm control over your inventory. It can be tempting to buy in bulk, especially if it means you will benefit from discounts. However, ordering too many supplies can be a costly mistake. If you buy excessive quantities of resources such as office supplies, you may never get around to using them, meaning they are simply a waste of your money.

5) Limit your travel costs

Think about ways to lower your travel costs too. For example, it could be useful to set up conference calls in some instances rather than attending meetings in person. Also, look out for cheap deals on travel and hotels if you do need to make business trips, and if you or your personnel are driving to destinations, make sure the routes are carefully planned to limit mileage.

Being shrewd and bringing your costs down in these ways could help to give your firm a competitive edge and bolster your long-term prospects.