Money-saving tips for business owners
Throughout the ups and downs of running a business, the companies which make it time and time again are those which manage their cashflow well from the outset. We’ve compiled a list of simple yet useful tips to business owners to help increase operational efficiency, whether you’re just starting out, or have been up and running for several years.
Tips on saving money
- Open a dedicated business deposit bank account for tax liabilities. You may find that interest rates are minimal, however a rate of 2-3% may be achievable. Compare that to 0% in nearly all other business bank accounts, and you’re on to a winner.
- You could save a considerable amount of cash by switching your suppliers. Easily compare everything from utility bills, phone, broadband packages and bank accounts online to see how much you could save. Check out uSwitch and MoneyFacts for more information, you won’t regret it.
- As hinted at earlier, it is vital that you keep a close eye on your cashflow. Running out of cash is by far the biggest reason why companies go bust. In order to help combat this, make sure you have an effective invoicing system, with reminders, discounts for early payment, clear payment terms, and don’t forget you can charge interest on late payments.
- Absolutely do not miss your deadlines, as you could end up paying hefty penalties for late annual returns, VAT returns, company accounts etc, Mark up all key dates in your diary, and be prepared well in advance.
- Outsource the work that isn’t your speciality, for instance everything IT related. Through the internet, you have access to a global marketplace of web designers, marketers and much more. In comparison to a salaried employee, it’s a small investment with a good return, providing you choose carefully (remember, the cheapest option may not be best!). Check out PeoplePerHour, Fivver and other freelancer sites.
- Compete with the big boys by making your company look big through a professional website (only costs a few hundred pounds), and for that added professionalism, consider utilising a mail forwarding and call answering service. Of course, make sure to get some nice business cards too – traditional marketing and networking still very much have their place.
- Finally, leverage cloud computing. It really has opened up infinite possibilities with a wide range of cost-effective software solutions, including our recommended accounting software – Xero and Kashflow.