Saving money is usually quite important to businesses, particularly in the early stages of a startup where spending on the wrong things can have a significant impact on the success of the company.
However, there are plenty of areas where you could be spending more than you need to in your business, without even realising it. From employee salaries to essential business utilities, you could be paying out more than you actually need to every month.
Here are some areas where businesses commonly waste money and how you can save cash instead.
Consider If You Can Work from a Cheaper Location
The modern, swanky high-rise office in the city centre is appealing, but do you really need it? Prime locations like city centres often come with the highest rent, and you might be able to find a bigger office that’s just as nice, but out of town.
And if you don’t often have clients over to the office and purely need it as somewhere for you and your employees to work, an office in a quieter, cheaper location could be beneficial for all.
Not only will you typically pay less in rent, but you and your employees can avoid battling the city centre rush hour traffic, and there’s more likely to be somewhere free to park.
Work with Freelancers Instead of Hiring New People for Everything
Of course, there are always going to be some employees that you simply can’t do without. But before you post a new role, consider whether or not you might be better off taking advantage of the gig economy.
For example, if you need somebody to create content and manage social media for your business, it may be a lot cheaper to work with somebody who does this freelance – and you can pick from a wider talent pool of freelancers across the world rather than being restricted to employees in your local area.
You can find freelancers who can do anything from sales and customer service to web development, so weigh up the costs carefully before you post a job vacancy.
Switch Your Electric Provider
If you’ve been using the same provider for your business electricity for some time, chances are you are no longer paying the best rates. Electricity costs are subject to constant change, and just like your home energy, it’s generally an easy process to switch your business over to a new provider and save money on the energy that you use. It’s easy to do when you use a business energy comparison site; just enter your details and browse the best offers available right now.
Ideally, you should do this on a regular basis to make sure that you are always taking advantage of the best prices. When switching, it’s also worth seeing if your provider will help you out with an energy audit – a professional will come out to your business and let you know if there are any areas where you could be saving more energy and spending less, and you might be surprised at just how much energy your company is wasting.
Buy Second-Hand Equipment
Setting up your office for the first time can be quite expensive. You’ll need office furniture, computers or laptops for your employees, and other office basics like a printer, photocopier, and speakers. But, before you go and buy everything brand-new, it’s worth considering if you can get any better deals second-hand. This is especially true when buying computers and laptops; you can often get really good refurbished ones that are perfect for the office at a much cheaper price compared to buying brand new.
Many businesses are wasting money without even realising it. By making some simple changes, you can save more money that can be reinvested in your company.