6 Quick Ways to Cut Business Costs

Estimated reading time: 3 mins

Keeping control of expenditure is one of the biggest skills a small business owner needs to master. Letting costs slide out of control will eat away at your profit margin. You may feel like you’re already paying too much for something, but thereare also some less obvious areas where small changes could make a surprisingly big difference. If you’ve not been back to your monthly outgoings for a while, then it’s crucial that you do so to identify monthly outgoings which can be cut or reduced. Here are some quick ways to help you cut costs and increase those all-important profits.

  1. Recycle More Waste to Avoid Landfill Charges

You’re charged for the waste that you send to landfill, so recycling as much as possible is a great way to reduce costs andlower your company’s impact on the environment. If your business produces a lot of cardboard and plastic, you shouldn’t be sending it to landfill. Every tonne of paper that is recycled saves 17 trees,4,000kW of energy and 7,000 gallons of water. There are some costs involved in getting recycling collected, but a baler machine can make this process simpler and cheaper by crushing your recycling into bales which can be stored easily. You won’t need to keep recycling bins on site and recycling will be collected less frequently.

  1. Reduce Your Utility Costs

Lighting, heating and water costs are a big expenditure for businesses, butthere are several ways to approach this. You could replace your lighting and heating system with more modern and energy efficient technology such as energy saving lightbulbs and air source heat pumps. Solar panels are a great investment as, although the upfront cost is sizeable, the long-term savings are significant as you’ll be generating most of your electricity for free. If you don’t have the capital for these investments,you should consider changing your utility provider to ensure you’re getting the best business electricity prices, gas tariff, andwater rates.

  1. Visit Your Accountant

You could be spending too much in taxes and may be entitled to more benefits than you’re currently claiming for, so make an appointment to see your accountant as soon as possible. Leaving the facts and the figures to a professional can prevent slip-upswhen working out your finances, which could be costly in more ways than one.

  1. Make Smarter Recruitment Decisions

Hiring the wrong employees can cost you money and time but getting the right person can transform your business. Concentrate on creating the best job descriptions and specification you can, highlight employee benefits and advertise in relevant places. You’ll attract a higher quality of candidate who could be the change you need to turn things around.

  1. Consider Outsourcing

Take a close look at your business processes and identify tasks and projects which you could outsource. If your staff spend much of their time completing administration or other time-consuming tasks it may be worth finding an external freelancer or company to handle these areas. This will free up your staff to concentrate their efforts in other areas, increasing productivity and potentially resulting in more profits.

  1. Buy Refurbished Equipment

You may be able to reduce some ongoing costs by choosing refurbished furniture and equipment rather than brand new models. Many brands offer a good range of their products at discounted prices. If your company uses vehicles, consider leasing rather than purchasing.

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