Is your business cost effective?
Profit margins are the main aspect that drives the business forward, after all, if the business isn't cost effective, how can it make money? But with expenses around every corner and bills piling up, it can be a challenge.
Most small business fail due to cashflow, according to smallbusiness.co.uk
Cashflow is responsible for up to 90 per cent of small business failure., which just goes to show how important managing your cashflow can be.
In order to help out small businesses we've compiled this list of ways in which you can help you maximise your cost effectiveness and manage your cashflow.
Rent any equipment
You may like the thought of having the latest and most up to date equipment in your business, but this may not always be feasible when money is tight. This is where renting equipment can help. Rather than paying for a new PC outright you can rent one and pay a monthly fee for it, with it being replaced every year so you always have the latest model. It may work out that over the course of the payments you end up paying a little more for it, but it can save the initial outlay all at once.
When you've just started your business, or your business is still relatively small then the chances are you won't be able to afford many employees. Or that you won't need them every day. This is where you can use freelancers instead of a full time employee. There are companies out there that match the skills to the job required, but do your research and make sure you're hiring the right person for the right job.
There are websites that can help find freelancers for you too. Sites like Freelancer acts like a directory of freelancers and can help speed up the process of finding someone.
While business trips may be a great way to close deals and network with others they can be costly, by the time you take into account food, drinks, accomodation and travel. But it needn't be this way any longer. Video conferencing offers you a way to be face to face with the person you're meeting while staying in the comfort of your own environment.
With cloud technology playing a bigger and bigger part of everyday practices in business it can be a good way to keep costs down. If you have employees, it could allow them the freedom of working from home rather than commuting into an office every day. This could mean you are able to rent a small office space and save money in the process.
Hopefully there are a few things on this list that your business could start implementing in order to improve cashflow. Not all of these tips will help every business and there may be some which you feel have been missed but have saved you money and improved the way that your business is operating. If you have a budgeting and cost saving success story, or want to share tips of your own, let us (and others) know by tweeting them to us, @CompanyWizard.
- 28 Oct 2019 - Cost Cutting Hacks for Small Businesses
- 11 Oct 2019 - Tips for Developing a Mission Statement
- 08 Oct 2019 - Tips to Open a Business Bank Account in the U.K. for your Limited Company
- 27 Sep 2019 - What Happens When a Small Business Owner Dies?
- 12 Sep 2019 - Things to Consider as a Young Entrepreneur