Saving money for your business is obviously a great initiative at any time. During hard times, however, it’s arguably even more valuable. Do you know how to save money in your business?
The year of 2020 has, so far, been dominated by COVID-19 in many ways, not least of all the economy. Communities, businesses, and individuals have felt the impact of the pandemic – and many of us have been compelled to tighten our proverbial belts.
We’d like to offer a few tips for saving money during tough times – or, indeed, at any time.
In the Office
Here are a few things you can do if you have a physical office:
- Buy during sale time and buy in bulk – for items you need in the office, be sure to take advantage of sale periods (for example end of financial year!) and buy a supply for the future.
- Turn it off at the wall & shop around for electricity – did you know up to 75% of electricity is used while the item is turned off/ idle? Turn everything off at the wall (computers, TVs, etc) when you leave for the day. And be sure to review your energy supplier periodically.
- Go Virtual – from saving on electricity and fuel to reviving employees, working remotely – even if just some of the time – can mean higher profits. This goes for everyday work, and meetings you’d usually travel for.
- Reduce paper usage – Default to double-sided printing and avoid printing wherever possible. It’s a habit you have to build, but it’s a doable one.
- Sublet space you don’t use – do you have a desk or room you’re not using? Could you sublet it to another business?
In your Relationships
From vendors to employees, here are a few ideas to save money within business relationships:
- Replace benefits with perks – sometimes your employees will derive just as much value from cost-effective perks you provide as from expensive benefits. Consider offering a service your company already provides or an add-on that you can provide through a local partner.
- Barter – offer your product or service in exchange for a product or service from another business.
- Renegotiate your deals – list out all the suppliers you currently pay, and call them all to see if they’d be willing to give you a discount.
- Review your unprofitable clients – take a hard look at your client profitability, and either renegotiate with the ones who are costing you, or let them go.
- Revisit your subscriptions – do you subscribe to services or publications, or even memberships? Take a look at whether you could cut some out, at least for the time being.
- Hire for capability rather than experience – it’s always good to have team members who’ve ‘done it before’ but if you are willing to put in a little extra work with new employees who have less experience and lots of capability, it may be a relationship that works for everyone.
And don’t forget – tax write-offs are key at this time of year. In order to reduce your tax liability, write off everything to which you’re entitled. Talk to us to maximise your tax return.
How can QC Accountants Help?
Saving money anytime is good. Saving money now – when times are uncertain and things are tight for many businesses – is even better. We’re here to help you work through things if you need an objective party.
We are available on email ([email protected]) or telephone (07 5593 6060).