Running a small business in the UK demands savvy financial finesse for growth and staying power.
A recent UK study highlights the all-too-familiar struggle of businesses grappling with costs while profit warnings flash like neon signs. But here’s the scoop: slicing away the fluff is the ticket. Ditching those unnecessary expenses is like trimming the fat to reveal the lean, mean business machine.
Forget the one-size-fits-all approach; it’s all about zooming in on those moneymaking moves that truly count. So, buckle up, and learn the top nine expenses you can avoid in your small business.
1. Unreliable service providers
Cheap isn’t always cheerful. Perhaps you know the saying, “You get what you pay for.” Well, it’s true when it comes to service providers.
A recent UK survey revealed that customer service complaints hit an all-time high in 2022. Here’s something worth noting: many customers would ditch a service due to dodgy customer support. Nobody enjoys dealing with tech meltdowns and MIA customer service reps.
Outsourcing can be a big move for saving costs and improving your bottom line, but it’s always better to do your due diligence so you don’t settle with an unreliable partner.
2. Paperwork
Paperwork is like a never-ending avalanche of forms and files, right?
Sage UK says small business owners spend 120 working days each year wrestling with admin tasks. So what’s the solution for eliminating the mounting paperwork?
Kick out the old school with digital document management and cloud-based accounting apps. Think QuickBooks, Fresh Books, NetSuite, and others – they are lifesavers and wallet-savers.
You might get rid of all but one printer. If you require some printing action, it’s no big deal – head on back, give it a friendly plug, and voila! The wild part? Your paper trail has taken a nosedive of over 90%.
Talk about less ink-slinging and eco-friendlier vibes.
3. Out-of-town conferences
Jet-setting isn’t exactly pocket change. But here’s the game-changer: think web conference software.
It’s like having your own teleportation device, letting you chat face-to-face with folks worldwide without leaving your business premises. While this isn’t suggesting ditching travel altogether – nabbing a sit-down with a big-shot potential client? That’s gold.
But here’s the deal: save those travel funds for the VIP situations that truly count. It’s all about smart spending and strategic results.
4. Injury compensation
Let’s talk about a reality check – work injuries. Believe it or not, they’re familiar with any business landscape.
Workplace injuries aren’t just a pain in the neck; they can drain your bank account too. The Health and Safety Executive UK uncovered that injuries cost a staggering £16.2 billion in 2019 and 2020.
And here’s the kicker: it’s not picky about industries.
Whether your business involves clocking hours at a comfy office desk or getting your hands dirty in a factory, that risk of a slip, trip, or tumble always hangs around like an unwelcome party crasher.
If your business requires a lot of heavy lifting, prioritise safety training like a manual handling training program, equipment TLC, and safety protocols.
5. Interest on credit card balances
We all love credit cards until the interest comes knocking. The Bank of England’s study says UK small businesses are handed high-interest rates than regular enterprises.
Now’s the time to shop for better interest rates or consider those fancy business loans. Are you looking for more ways to avoid the interest from haunting you? Pay up your credit card debt.
It’s all about playing it smart and paying off those monthly statement balances in full before your grace period waves goodbye. Think of it like a financial ninja move – you’re dodging interest traps and keeping your credit card game strong.
As long as you settle up before that grace period, you can swipe that plastic without worrying about those sneaky interest charges.
6. Insurance
Insurance is like a safety net for your business, but going overboard can burn a hole in your pocket. Premiums aren’t cheap. Therefore, do a little risk assessment, find the perfect coverage, and avoid being that person who buys 10 umbrellas for a drizzle.
That said, ensure you’re not underinsured simply because you want to cut costs. If your finances are especially tight, increase the deductibles on your policies.
You’ll get lower payments, but you’ll be on the hook for more of the total if disaster strikes.
7. Excessive office space
Crafting an office space is like designing a productivity playground. When you blend in some ergonomic magic, it’s like boosting your work environment.
It’s not just about picking furniture; you must also choose a setup that helps you focus like a champ while waving goodbye to stress. But that doesn’t necessarily mean getting a fancy office space that drains your pockets.
And guess what? Professionals are going all remotely at least once a week.
Say goodbye to hefty rent and hello to flexible work setups or shared office spaces. You save money, and your employees get to work in their PJs.
It’s a win-win.
8. Streaming services
Streaming services make for happy employees but can also dent your budget. A Netflix survey revealed that 37% of employees are guilty of streaming on company time.
Find cheaper alternatives if you believe you don’t need to ban fun to get more from your teams. You can choose a designated chill zone where they can Netflix and chill during breaks.
9. Data storage
Storing data on-site can be like maintaining a money-devouring beast. Several surveys spilled the beans on how many UK businesses live the cloud dream.
Why not join the cloud party to slash hardware, maintenance, and security costs? It’s like swapping your gold-plated credit card for a reward card that rewards you.
So there you have it! With these money-saving moves in your back pocket, you’re ready to kick those expenses to the curb.
And remember, by dodging these financial pitfalls, you’re not just making your wallet happy – you’re setting your small business up for growth, success, and those sweet pounds in your bank account.
Cheers to savvy spending!
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