Prices are sky high in the UK now; a global problem. Here are five ways to save money in your small business before giving in and folding.
This is one of the worst economic periods for business in a generation. We Millennials have lived through recession after recession in our adult lives, but this is the worst. With costs constantly rising and no end in sight, it makes you wonder how many of us will survive the winter. The Guardian reports as many as 70% of pubs in the UK will close before Christmas here in the UK. This is a similar story all over the world… but what can we do about it to protect the small businesses we spent our lives building? Let’s review.
The 5 Savings You Can Make in Your Small Business
Small business savings are hard to spot. But, follow these five tips, and you should see an improvement in expenses.
1 – Renting your Space
Do you rent a space from a landlord to house your business? If you do, then you have an excellent opportunity to share your workspace. Take inspiration from this coworking space in Singapore, which lets multiple parties rent a room in the same office building. If you share your rented space, you pay half the rent, the WiFi, the heating, and the lighting costs.
2 – WFH
Do you even need a rented space? If you don’t work with the public and if you don’t have outsiders in your office, why not go full Work-from-Home? This plan can only operate if you trust your employees. If you think they could handle WFH, there’s no reason to hesitate. Rental overheads are the highest outgoings for most SMEs. Get rid of that expense altogether and see if the business still works.
3 – Examine your Production Line
If you produce goods, examine each step of their creation. In manufacturing, shaving a few seconds off the speed of each machine allows you to up production and save costs. That’s not the only way you could save. They are upgrading machinery that regularly breaks can save you long term with a bit of initial spending. Examine your production line for any flaws, imperfections, or jams. Areas with chronic problems need highlighting and treatment.
4 – Employees
We hate to say this, but we know the skill and determination it takes to create a business. If hanging on to the employees you feel you can’t live without is intrinsic to you, your business will go under faster. Besides the cost of employees’ wages, there’s only one insurance type in the industry in the UK that it is illegal not to have, and that’s employee insurance. Ditching the employees and going back to basics – you operating out of your living room like you did in the beginning – means you can drop thousands in extra costs. You can re-hire later but tighten the belt to save your business now.
5 – Shipping and Packaging
You wouldn’t be the first company to ooze money monthly just because your shipping and packaging processes are outdated. Calibrating wrapping machines can save on packaging materials. Using paper instead of plastics shave down costs. Also, reducing wastage during the shipping process can help.