Published on January 5th, 2016 | by Pete0
Small Businesses – Saving for the Future
In 2013, the UK Private Sector brought £3,300 Billion into the economy. Of these private sector businesses, 99.2% are classed as “Small”, meaning they have up to 49 employees. With more people wanting to quit their day jobs and start their own business, we are currently experiencing the rise of the SME. As most entrepreneurs or small business owners will tell you, one of the most effective ways to ensure your business can grow is to save money at every available opportunity. Here are some top tips designed to help you save money within your fledgling business;
Appropriate your workforce
If your business in small, consider how you can use what employees you do have to work across a number of jobs. Use this opportunity to present ambitious employees with a chance to expand their skillset while you get the benefit of not having to hire more staff to cover many roles. The number of lower skilled employees should be kept to a minimum. When you start employing, ensure that the people you do hire are flexible in what might be expected of them.
Reduce energy costs
The Carbon Trust recently reported that UK business owners lost £300 Million due to workplaces not being energy efficient. Changes to lighting, heating, insulation, as well as more simple steps such as reducing the use of paper and remembering not to leave electronics on stand-by all have the potential to create big savings within your business.
Reduce spending on legal fees, where possible
In the UK, workers are very rightly protected by law as a means of ensuring a safe work environment and to avoid exploitation by employers. Ensuring your business is legally up to standard is a necessary, yet costly exercise. Companies such as LegalZoom specialise in preparing templates for legal documents, as a means of getting round the often high fees associated with hiring a solicitor to do the same job.
Make your perks cost-effective
When attracting talent to your business, it is important to offer something that other employers can’t. Even though you are running a small businesses, you’d be surprised at the savings that can be made by investing in a healthcare plan for your business. Having something like this in place could save you a vast sum if anything unfortunate was to happen. They also give you another dimension in your hiring power as potential employees know that they themselves will be covered.
Manage your cash flow
Finally, the most effective step in being able to save money within your business is to effectively manage your cash flow. With half of UK start-ups failing within the first 5 years, an understanding of where money comes from and how it gets spent is paramount to the success of any business. Big or small, thorough accountancy is the cornerstone of what makes a company thrive. Ensure you have the framework in place to monitor the flow of money within your business.
Starting your own company can be a thrilling, yet challenging experience. Like a bird nursing an egg, your business is at its most vulnerable when it is at its youngest. Following the advice above will go some way to ensuring that your business will take flight!