4 Simple Ways To Cut Costs While Boosting Business

Even implementing the most simple measures can ensure your small business is able to reduce its overheads - and achieve greater profit

4 Simple Ways To Cut Costs While Boosting Business

Every business owner wants to keep costs as low as possible. However, it’s important not to fall into the trap of being penny wise and pound foolish when you’re looking to reduce your overheads. While it’s great to shave a few hundred pounds off your annual expenses, this is totally counterproductive if it’s going to cost you tens of thousands in missed opportunities.

However, there are plenty of ways to cut costs in your business without hampering growth. Here, we’ve brought together four of the best — read on to find out how they can help you keep your expenses down and accelerate growth.

Become more energy efficient

If you’re looking to cut costs in your business, the first place you should look is your energy efficiency. Most business owners don’t realise just how much of an impact this can have on their finances. However, cutting your energy costs by 20% represents the same bottom line benefit as a 5% increase in sales, according to the Carbon Trust.

Reducing your company’s energy consumption doesn’t have to be complicated. Start by having your premises properly insulated, installing energy-saving lightbulbs and motion-activated light switches, and attaching draught excluders to doors. This will involve a small outlay upfront, but will shortly pay for itself several times over.

Get in touch with the government-run Energy Saving Trust for more expert guidance on how you can improve energy efficiency in your business.

Reduce waste

In 2016, UK businesses generated 27.7 million tonnes of waste according to the Department for Environment, Food, and Rural Affairs. This represents a huge financial drain on the country’s businesses, and a level of inefficiency that could be costing your company dearly.

If you want to make your business more cost-effective, you should look to reduce the amount of waste you produce each year. Whether in the form of excess packaging, unused materials, or faulty products, waste represents an inefficiency in your business.

The only way to reduce the amount of surplus you produce is to make your processes more efficient, which cuts costs and increases productivity. This is a win-win, and one of the best ways to not only cut costs on supplies, but also improve your standing with consumers who are increasingly concerned about the green credentials of the businesses they buy from.

Follow health and safety regulations to a T

Health and safety regulations get a bad rap, but they’re there for a reason. If you follow the Health and Safety Executive’s guidelines to a T, you’ll not only help protect your staff from workplace injury, but also be legally covered if there’s ever an accident on site.

Not convinced? Well, workplace injuries cost UK businesses £4.8bn between 2014 and 2015 according to the Health and Safety Executive. Fail to follow the rules that have been put in place to protect your staff and you could find yourself footing a share of this bill in the future.

If you don’t know where to start when it comes to making sure your staff follow the government’s health and safety regulations, take a look at Impact Handling’s ultimate guide to health and safety, which walks you through the process step-by-step.

Change the way you do meetings

If you and your staff regularly need to travel to meet with clients, customers, or investors, it might be time to rethink the way you do things if you want to keep your expenses down.

Next time you’re booked in for a meeting that’s going to involve travel, suggest a conference call over Skype instead. Between the cost of fuel, food and coffee, and any accommodation, this will save you hundreds, if not thousands, in expenses each time you have a meeting.

This is before you count the dead time you’ll be paying your staff for during travel. Calculate all the travel expenses, then add the wages of everyone attending the meeting and you’ve got the total cost. If this ends up being more than you’re happy with, cut this expense entirely by having your next meeting over Skype. This can cut an expensive, day-long round-trip into an hour or so out of each employee’s day. This also frees up your team’s time to spend on growing your business.

If you implement these four ways to cut costs in your business today, you’ll not only improve your bottom line, but also facilitate future growth. The earlier you put these systems in place, the sooner you’ll benefit from the results, so don’t hesitate to make these changes to your business if you want it to be as profitable as possible.

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