As a small business owner, most of your time is spent sunning yourself in the south of France, driving to the supermarket in your eye-watering expensive supercar, and dining with your model wife.
Of course, we’re kidding, your life is much more exciting than that.
As you know, you thrive on a daily diet of cost slashing, growth chasing, and massive cigar smoking – but some members of the capitalist brethren are failing to keep up. Yep, a large number of wet behind the ears entrepreneurs are still hemorrhaging cash in areas that are easily avoided.
Consequently, to avoid your business dreams crashing and burning like that’s not and a tear-inducing scene from Top Gun, read our five quick and easy money-saving tips below …
Save Energy
It sounds obvious, but if the research released by the Carbon Trust at the end of last year is anything to go by, British businesses are missing out on almost £300m per year in energy savings – and one of the main problems is workers who are unconcerned about how much their energy usage affects their employer’s bottom line.
In an effort to reduce costs then, you should be prepared to install an automatic meter reading device to keep an eye on the energy being used by your business. This will allow you to take stock and implement appropriate action in areas where energy consumption threatens to bring your firm to its knees.
Slash Staff Costs
There’s simply no getting away from it – to help your firm grow, you’ll need to splash the cash on new talent to supplement your existing workforce. In the same breath, though, some of your most proficient employees may decide to head off to pastures new. Fear not, however, as experts have revealed there are two easy ways you can save money on wages and recruitment.
First of all, if someone does leave your firm, take your time before replacing them. Why? Because other ambitious personnel may see this as an opportunity to fill the gap, which will save you money in the process. Additionally, you can also keep the costs of your staff down if you take on temporary workers at short notice, dictated by the needs and wants of your business.
Chase Bad Debt
It’s hardly a secret that customers’ refusing to pay their bills is an issue for any company, regardless of size. Aside from taking up valuable resources chasing unpaid invoices, this sort of situation can affect your own cash flow, meaning your firm may need to dip into its cash reserves or overdraft facility.
Consequently, to avoid expending time and money chasing bad debt, experts advise relieving the burden by using specialists. Surprisingly, it only costs around £2 for an outsourcing company to send a warning letter to a bad debtor, which can be the difference between your invoice being settled or thrown in the furnace.
Image Source: Businessman’s Hand Protecting Euro Coins At Desk