Monday, 14 December 2015

GUEST POST - 5 ways of cutting costs for small businesses.

All small businesses need to keep a close eye on their expenditure. Too much focus on sales and turnover means that costs can soon get out of control. Once in a while all small business owners need to look at rationalising their systems, offices or staffing needs. These are five small business owners can cut their running costs.

Embrace Cloud Computing

One of the major costs of small businesses is software licenses. You may only need one or two licenses for commonly used word processing or spreadsheet packages, but the cost soon mounts up. Instead, opt for cloud-based services. You can run your website, company database, accounts spreadsheets and customer records through the cloud without having to invest in expensive servers. All you need is a few basic computer terminals with a simple operating system and access to the internet. You don't have to pay for rarely used software licenses in the cloud-enabled world.

Make the Most of Freelancers

When you have a new project to take on, you might well think of how much you are going to earn and not on how much you could save. However, by hiring a freelancer for a short-term project rather than taking on a member of staff small business owners can save money. Once the work dries up or changes for some reason, you don't have the cost of their ongoing salary or face the need to retrain them. Freelancers can be brought in with the necessary specialisms and with no onward cost to the business.

Make the Most of Your Space

Most small businesses have a bit more room than they need, as the strive forwards for more expansion in the future. In the meantime, it is advisable to make the most of your space by allowing others to use it, too. Simply by installing office partitioning systems you can let space that you are not using to start-ups or sole traders. Dividing your space up, like this, has another advantage even if some of the office is not being used at all, because it allows you to only heat and light the section of the building that is in use, helping to reduce your overheads.

Pool Your Purchasing Power

Paying for things that you don't use regularly can mean that costs are disproportionately expensive for smaller organisations. Small businesses should pool their purchasing power at every feasible opportunity. Work with other small businesses in the area when procuring services to ensure that you get the best deal together. Alternatively, opt for SME discount sites on the internet which pool like-minded business to help them buy together.

Keep on Top of Travel Expenses

Double check your staff's travel expenses and ask yourself if journeys are really necessary. Train travel is expensive unless you book it long in advance so avoid short-term rail travel. In a city, a bicycle can be an effective way of getting around for small business use so buy one for staff to share. This can really save money compared with the cost of hiring cars or using public transport.

Guest post written by Warehouse Storage Solutions Ltd, who are the providers of cost effective partitioning and storage solutions to businesses. If you are interested you can find more information on facebook and twitter.

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