Top Tips For SMEs To Save Money
For an SME, reducing costs can be as essential as growth. The service you provide to your customers cannot be compromised so you will need to look at other ways to save money that will not affect quality or output.
Here are some simple, but effective ideas that could shave a significant amount from your operational budgets.
Save Money on staffing costs
When a member of staff leaves the company, take time to consider the merits of their role before you start the recruitment process.
If the employee has been with your firm for a long time, is their role still truly relevant to the direction you are now moving in? Does the role require the full-time attention of one person, or can the workload be shared out?
Save Money on water bills
In April 2017, England’s business water market will be deregulated. This means an end to the regional monopolies currently enjoyed by the likes of United Utilities and Thames Water.
Water deregulation means you can look for suppliers that offer lower bills and efficiency savings and help to meet any corporate social responsibility obligations.
More and more people are using their own mobile phones and tablets for work purposes. So think about switching your numerous, costly, software licences for enterprise apps.
Save Money on energy bills
Taking steps to reduce energy consumption is common in the home, but how often do your employees think about switching off lights, computers and heaters in the workplace?
Send emails to remind staff they have a duty to help keep energy bills as low as possible and put stickers on appliances that are likely to be turned on then forgotten about.
Also, don’t forget that your energy supplier is just one of a number of companies that wants your business. Regularly compare gas and electricity prices to ensure you are not missing out on a better deal.
If you have more office or warehouse space than you will need over the next year, think about sub-letting. If you choose your tenant wisely, they may bring in additional business as well as rental income.
Business Life Insurance
If the success of your business depends on the skills and talents of one or two people then you should consider business protection via key man insurance.
This may seem like an outlay rather than a saving, but business life cover could keep your company afloat in a time of crisis. If a vital member of staff dies or suffers long-term illness then a key man policy will allow you to claim for lost profit, as well as recruitment and training costs.
Putting certain members of staff on a company life insurance policy can also be a worthwhile move. With relevant life insurance, the employee is the beneficiary of any claim, but there are financial advantages for the business too. This is because the premiums are offset as a deductible expense, which makes it a particularly attractive option for directors and high earners. To get the best advice on business life insurance, contact one of our expert business protection advisers.