Money Saving Tips and Ideas for Small Businesses: Many small businesses have felt the pinch over the past two years, with the public going in and out of lockdown and many companies losing trade as a result.
The UK Government has introduced plans for ‘living with Covid’ which has essentially given the public pre-pandemic freedoms back.
While that has seen an uptick in business for so many, times are still tight and so you might want to keep a close eye on your bottom line for the time being.
Here are some top tips that you can use to keep on top of your business finances as society gets back on its feet.
Follow The 80/20 Rule
The 80/20 rule states that 20 per cent of inputs will impact 80 per cent of outcomes.
For example, 80 per cent of your revenue might be generated of 20 per cent of your customer base. Those loyal repeat shoppers are therefore the ones you will want to target with marketing campaigns designed to give your business a boost.
Focus On Revenue Per Employee
As we all begin to rebuild following the worst of the pandemic, businesses cannot afford to be unproductive in the months ahead.
Breaking down the contributions of your individual staff members will show you who is excelling, as well as whether anyone needs to be encouraged to offer a little more.
Do things yourself
From time to time you will find that your premises, equipment or vehicles might need touching up to keep them running smoothly.
While it’s advisable to leave the big jobs to fully insured professionals, you might be able to shave off a few outgoings by turning your hand to a bit of DIY. You may be able to find tools to help you keep on top of problems and fix them before they escalate. Find out more about that here.
Partner and outsource
You will have likely built up a lot of business contacts over the years and now might be the time to put them to use and set up a partnership. This way you can mutually benefit each other and you might be able to raise revenues as a result.
Similarly, outsourcing some operations might work out cheaper than hiring people to do the role for you. If your business is small, outsourcing HR duties is a cost-effective way to keep things in line with regulations.
Get interns or younger staff
Some industries might not necessarily require a long-standing full-time staff and if this applies to you, you may be able to hire younger staff or inters looking for a first taste of employment.
While this can drive costs down in wages, it can increase your need to deliver training, so be sure to balance this up before going ahead.