A look in to how a small business can save money

Money is a precious commodity for any business, but especially so for a small business. A small business has to work hard to run efficiently, and finding ways to cut costs is one way to do this. Fortunately, there are several ways that a small business can save money.

Finding ways to save money

The easiest and most obvious place to look for potential cost savings is in your small business’s energy consumption. Where possible, replace all standard light bulbs with energy-efficient ones. These not only use less energy, but they also last longer than standard bulbs, so you will not need to change them as often. If your office has more than one main workspace, turn off the heating in rooms that are used infrequently. If staff want to open windows, ensure that the heating is off so that energy is not lost out of the windows. Finally, encourage your staff to shut down their computers at the end of the workday, rather than leaving them on standby.

Consider having fewer full-time staff to help run your business, and outsource tasks where appropriate. For example, use freelancers for projects involving copywriting and graphic design, and use your networks to find these. You could also outsource your payroll and accounting. If you do need to hire new staff, rather than placing expensive adverts in local newspapers, put the word around via your network that you are looking for individuals with certain skills.

Marketing is perhaps one of the biggest expenses for a small business, but are there ways you can market yourself for free. Social media offers plenty of marketing opportunities and word of mouth recommendations, as do your contacts in your networking groups. If you really want to up your profile, take advantage of any free Google Ad Words vouchers offered by your suppliers.

Stocking up on supplies can also be expensive and sometimes unnecessary. Work out whether you really need to have printed letterheads or whether you can create a template using a word processor that can be emailed and if required, printed out, to cut down on stationery costs. If you email your business correspondence rather than posting, you will be cutting down on your postage costs as well. Bulk buying can also deliver significant savings, providing you will actually use all you buy. Alternatively, you could also join a small business reward system such as Grouptrader, which offers discounts and savings to members who shop online via their site.

Investigate whether your small business qualifies for any tax breaks, such as National Insurance holidays for new small business located outside of the South East of England. You may also be eligible for grants, such as those given for apprenticeships.

There are plenty of ways that your small business can save money when you begin to review how you operate. The trick is to always use a free service when it meets your needs, never pay for something that does not work well for you and keep an eye on your costs at all times to make sure they do not get out of control.