Itís no secret that running a business can be stressful and very hard work. So, it isnít surprising that many small businesses struggle with budgeting. In order to make your business as successful as possible, you will need to spend a little time focusing on ways to increase your profitability.
Whether you are struggling to make a profit, are looking to build up some savings for future expansion or you just need new tools, this article is packed with fantastic money saving ideas for companies. We even cover the planned UK corporation tax increases from 2023.
Money saving tips for service businesses 👇
While it can be difficult to understand the different financial aspects involved with running a company, the following money saving tips for businesses should give you a jumping off point:
- Improve productivity: Investing in training your employees will mean increased productivity, allowing you to take on more work.
- Raise your prices: Take a little time to see how much your competitors are charging. If they are charging more than you, it may be time to raise your prices.
- Claim back expenses: Remember, if you are VAT registered, you are entitled to claim VAT back for any tools and materials you purchase for your company.
- Cover a smaller area: If you have an abundance of customers, why not reduce the area you cover? Longer journeys mean wasted time and fuel costs.
Money saving ideas for companies of all sizes 👇
- Running a company can at times be challenging, however, making your business profitable will mean less stress and worry. Use these money saving ideas for companies to help boost your business into the black:
- Optimise spend: Moving your paid marketing and website spend to an online trade platform like Checkatrade can eliminate the cost of building an expensive website yourself. You will also benefit from an increase in customer leads through Checkatradeís homeowner searches. Plus, Checkatrade will even supply you with free marketing materials to really boost your business.
- Become more efficient: Investing in better quality tools and equipment can save you time and therefore money in the long run.
- Provide premium services: Train your employees to offer higher quality services at a premium. You could even train them in new disciplines that have higher profit margins, or to stop having to outsource work to other contractors.
Cost saving ideas for business tools and vehicles 👇
You may have reached a point in your company where you are struggling with debt or barely covering your outgoings. This is a great time to implement some of the below cost saving ideas for businesses tools and vehicles to revive your finances:
Buy tools and materials online using trade discounts. In fact, joining Checkatradeís online platform will give you access to excellent trade discounts.
Use stickers and signs attached to your van(s) to advertise your business for free, reaching more customers.
Invest in an electric van to reduce fuel costs in the long term.
Reducing business expenses 👇
You may not have the best head for figures, but if you want to maximise your companyís potential, use the following tips for reducing business expenses:
- Outsource jobs: This is where you manage the job but use another company to do the work. This helps to eliminate overheads and allows you to take a referral fee for little work. This is also ideal if you have a specialised staff member who only has a small amount of work and is no longer profitable.
- Buy in bulk: Many companies will offer discounts when you buy in bulk, so stock up on materials and tools that you use on a regular basis to save money.
- Insurance: While insurance is essential, it can be expensive. Use a comparison site to get the best deal. Whatís more, Checkatradeís buying club will entitle you to great reductions in business insurance.
With all that above being said, do you have any helpful money saving tips that you can share in the comments below ⬇