Now is the perfect time to give your business a spring clean, cleaning out all those unwanted or unnecessary expenses and improving your competitiveness. All businesses owners aim to maximise turnover, and ultimately profit, but this can be hindered by an increased expenditure which can go unnoticed. We have years of experience benchmarking costs and coming up with innovative solutions to support profitable growth. Keeping a close eye on those business outgoings is crucial for a successful business.
Here are a few top tips from us on how to spring clean your cost base:
When it comes to suppliers, have a few select suppliers you trust and who can trust you; higher volume per supplier usually results in better prices. Strategic partners will work with you to drive growth for each partner. Avoid long-term contracts as these can cause financial strain if you want an early exit and who knows how much the price of products or services could vary.
Software & IT
Are you using the correct software for your business? Our Xero product is great for reducing expenditure. Rather than purchasing expensive software that needs updated regularly, cloud applications can be used on a pay-as-you-go basis. There are no upfront costs and you will have no repairs or maintenance fees and you’ll always have access to the latest version available.
Cut costs on advertising and marketing by including advertising material in mailings such as emails and invoices as this will help reduce postage and other paper costs. Even think about splitting advertising costs with neighbouring or complementary businesses. And remember the opportunities for low cost/free advertising by offering expert advice or speaking at an event or conference.
When it comes to the tax bill some business owners can get a shock. Make sure you take advantage of tax relief for new equipment purchases, hybrid cars and other expenditures. Ensure to meet any tax deadlines to avoid fines. As a business owner you should always make use of the annual investment allowance to claim for capital expenditure on items such as computers, tools and equipment.
Staff can be expensive! If you don’t always require full-time employees it might be worthwhile considering hiring part time staff or contractors. It can be an expensive process hiring and firing so before you recruit more staff make sure that existing staff productivity levels are satisfactory.
If the cost of your debts are high consider re-banking or raising equity. We can assist and we can discuss crowd funding too!
The main priority of a business owner is to make appropriate and beneficial decisions when it comes to expenditure. People tend to focus 80% of their time on things that matter the least, however 80% of cost opportunities come from 20% of the best ideas. Try to obey the 80:20 principle by spending more time on those worthy ideas.
At RBL we strive to support all our clients to achieve their potential. Why not call RBL today on 02895320155 for a free consultation to see how we could help you spring clean your finances and put you in a better position going forward.