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5 ways to reduce costs for businesses

With inflation expectations continually increasing, what practical steps can businesses take to reduce their outgoings? Here are five ways you can start bringing your costs down today.

Capitalise Aug 24, 2022

 

1. Shop around

Don’t just stay with your usual suppliers out of habit – now’s the time to see what else is out there in the market. Get quotes for the things that make up your fixed costs such as stationery, energy, telecoms and insurance.

 

2. Shift gears

 

For heavy energy users such as manufacturers, look into whether introducing shift work would provide cost savings. Compare the impact of potentially higher wage costs for working unsociable hours with the lower cost of energy at night.

 

3. Work smart

Carry out a Time and Motion Study to make sure that you’re optimising efficient working processes. And then act quickly to improve where you can, as soon as you can.

 

4. Get advice

 

Get in touch with your local authority Business Growth Hub. These hubs often have grants for spending time with their specialist energy consultants who can suggest ways to bring down your costs. For example, they may recommend that you make behavioural changes to your working practices. They may also give practical tips for reusing and recycling materials – whether that’s LED lighting, solar panels or burning waste for fuel. 

 

5. Start small

So consider all the outgoings in the business and remove those which aren’t essential. Do you really need to keep that stock of supplies in the stationery cupboard? Can you get better fuel rates with a fuel account rather than paying consumer prices on the forecourt? Do you have business memberships which you pay for but don’t use? Even small changes add up.

 

Having a good credit score will also help you negotiate better credit terms with your suppliers – which could go a long way to relieving the pressure of rising costs. 

 

Speak to us about how you can stay on top of your business credit score and the options available to you if there’s room to improve.

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