For many business owners, the focal point is creating more revenue. The clever business owners will focus just as much care and attention on slashing their monthly expenditure as they do on increasing revenue. Businesses are incredibly wasteful. Waste is easily turned into profit. By understanding basic ways to operate more efficiently, your business can become more liquid.
Chopping Up Your Tax Bill
If you are a small business owner, it is likely that you attempt to do some or all of your accounts without any external help. After all, who wants to pay £1,000 or more for an accountant, when they can do the job in their spare time?
The reality is that accountants are worth their weight in gold. Most accountants will easily save businesses money equal to or more than their actual fees. What they also do is offer help and advice as to how they should operate financially in the future and improve their finances. Employ a good accountant!
Reducing Your Utilities
If your operation relies heavily on a large warehouse or office, then it is likely that utilities have their part to play in your monthly expenditure. If you moved in and didn’t switch supplier, consider it now. There are some budget suppliers in the UK that could be offering you a much better deal such as the Utility Warehouse. There are hundreds of comparison websites that will allow you to compare suppliers within a matter of minutes.
Before taking out a loan or extending that credit card, think; is there a better option? Most of the time there probably is. That being said, don’t avoid an opportunity simply because you don’t have the cash in the bank. If the opportunity has limited risk and shows a good return, then you need to find the credit supplier offering the lowest interest rate possible. The same goes for debts, always make sure you are paying off debts with the highest interest first.
Split Test Marketing
Although your marketing efforts might be producing a positive ROI, they might not be producing the best ROI possible. Every time you execute a marketing campaign, you need to be logging the results. The more data you have, the easier it will be to modify the campaigns in the future to be much more efficient. You will be able to reduce the cost of your marketing, but increase revenue at the same time. If you market your business aggressively, then this is going to be particularly important.
Give a certain employee the task of sourcing products and services. You will be surprised how much money you can save just by shopping around. The chances are you will be able to find products and services 10-15% cheaper than you initially thought.
It is always wise to use review websites to compare service providers. Not only will they give you an idea of what service providers offer a great price but they will also give you an idea of which ones are the most reliable. Whether you are purchasing office paper or gate valves, there are savings to be had.
Alex is an online writing professional that has been creating blog posts and articles for websites since 2007. Initially, he only participated in blogs relating to extreme sports. Over time he has been asked to write pieces relating to technology, green living, the economy and even import and exporting worldwide.