3 smart ways to cut overheads without cutting corners
There’s no getting away from the fact that we are living in tough economic times. Small and medium-sized businesses are particularly feeling the squeeze as the costs of running a business go up and up – from raw materials to rents, it can feel like there is little scope left for making a profit.
Cutting costs is the obvious solution, but how do you do this without cutting corners? Is it possible to save cash and still maintain a high-quality product or service? The good news is that yes, you can keep those overheads down without compromising your customer service, and we’ve got a few simple ideas to get you started.
Switch to smarter banking solutions
If you’re still using a traditional bank for your business banking and feel like you’re paying through the nose for services, then stop – there is another way. There are loads of modern, digital banking options available nowadays, tailored to SMEs. Online banks keep their overheads low so that you can too, plus they often build in other useful business features.
Tide’s business bank account, for example, is free to set up, you only pay for what you use, and it includes a suite of business tools like expense management, invoicing tools and easy integration with accounting software.
Small businesses and sole traders often find they can manage without an accountant too if they switch to accounting software that makes the job easy. There are of course perks to having this done professionally, and legal obligations to fulfil, so make sure you feel confident before taking this on completely.
Free up equity in your property
Many SMEs sit on unused properties ‘just in case’, but these end up being a drain. Take a moment to consider your assets and if they are really serving you. Perhaps you own an office but could do the job just as well from home? Few small businesses need a physical base nowadays, so if your premises are serving your ego rather than your business growth, it could be time to sell.
One easy and quick way to do this is to use a cash-buying service, like We Buy Any Home. We Buy Any Home buy commercial as well as residential property, so it could be a very simple way to unlock equity to reinvest in your business and is a guaranteed sale at a time that suits you.
Cut travel costs by embracing technology
If you currently spend a lot on travel and meeting costs, then ask yourself how important it really is for meetings to be in person, if they are needed at all. You’ll probably find that most meetings can be conducted online with a meeting platform like Zoom, meaning you save the travel costs and time and don’t need to hire a meeting venue either.
These tips are just starting points for inspiration, but we’re sure once you start looking at your expenditure more carefully, you’ll be able to find lots of ways to cut overheads. And don’t forget, even small amounts can add up, so don’t ignore the small savings too.
