It’s the start of a new year, and it’s usually considered a good time to make changes, plan ahead and review budgets and costs. As a small business ourselves, we’re constantly reviewing the best ways of saving money. Although we’re growing, we still like to rein in our expenditure to ensure that we’re not overspending. There are a number of ways in which you can reduce your revenue costs, and The Guardian Small Business Network and the Start-up Donut set out a variety of ways in their attached articles. (See below).
Reduce your staffing levels and consider using a virtual PA
A good time to assess your staff requirements is when someone leaves. Ask the question, ‘do I really need to fill this gap’? There may be internal secondment opportunities, or it may be a quieter time in your business, and you could suspend the hiring until your next peak period. If you’re a start-up business and are thinking about hiring a receptionist or a PA, why not consider using a call handling provider?
How using a telephone answering service can save you costs
A telephone answering service can bridge that gap between hiring a full-time employee and ensuring that your business' professional image is upheld at a crucial stage in your development. The cost difference between a full-time receptionist and a virtual PA at Face for Business is quite substantial! We can save you up to £966.00 per month. (See our blog on how outsourcing can boost your profits here).
Other forms of cost savings are:-
• Save power – use an energy comparison website to enter your details and see if switching provider and tariffs can reduce your bills.
• Cut back on postage – consider using email instead of posting letters. If it’s a legal document, see if you can set up an encrypted and secure way of sending them via email.
• Suspend buying/review suppliers – make an executive decision to question every bit of expenditure for the forthcoming quarter. You’ll probably be surprised how much you can save this way.
• Outsource bad payers – don’t keep chasing bad debtors yourself. Pay a reputable company to take over the bill chasing. This saves you time and money, as once a letter has been sent out from this type of company, people are more likely to pay up!
• Monitor your costs – this may sound straight forward, but are you really keeping an eye on your bank statement, and do you know what every bit of expenditure relates to? There may even be some payments that can be cancelled.
• Office accommodation – are you paying high rental and business rates? Do you rely on footfall for your business or not? If the latter, consider residing in a location that is a bit out of town, with lower rates. Although it may costs a little more in fuel, premises can cost a lot more.