Rising business costs is something that all businesses will begin to face at some point and will be an ongoing factor they’ll have to deal with throughout the life of their business.
For many small business owners, amidst the constant rising cost of materials and hiring, they manage to keep their customers and even expand their business. What’s the secret? Actually, it’s all about how you manage costs and here are the top 5 tips:
1. Increase productivity
Recently, one business owner shared with us that they track and limit how much time the staff spend on tasks and encourage self-imposed deadlines. By doing just that, they see productivity increases dramatically. You can also increase productivity by recognising and rewarding staff contributions with regular performance reviews.
2. Do outsource
Sometimes you save money by spending in the right area. One great example is when you are overwhelmed by multiple tasks, from running business development to handling staff issues, you may not have time to assess your financial health. By outsourcing bookkeeping and payroll functions to chartered accountants like us, and working with us on all of your financial matters, we keep you posted on your financial outlook.
3. Eliminate charges
Look at your overall costs and chances are, you will find areas which you can save. For instance, if the bank charges you a few hundred pounds per year for your overseas transactions, save by using an independent online money transfer service instead. Go through your transactions and eliminate as many fees as you can.
4. Have tax planning
You may not like the word ‘tax’ but it will always be there throughout the life of your business, so take control early by having a business tax planning session with us. The objective is to be tax efficient, which in turn means cost saving.
5. Turn it into an opportunity
Let’s be honest, many successful businesses do raise costs, but they time it for when their customers are happy and satisfied, when their customers don’t consider cost increase to be a factor given that they are getting top-notch service and attention.
Managing business costs is an on-going issue for all businesses. If you plan and strategise it well, you really can stay ahead of the numbers game.