Most entrepreneurs are people of instinct. They make decisions based on gut feeling rather than careful calculation. And, in most cases, their gut feeling serves them well, and their businesses move forward. But in some instances, like when it comes to their business expenses, gut feeling can often cost them a lot of money.
Here are some ways your small business can save on costs and drive growth.
Outsourced Payment Collection
Small firms and startups tend, in general, to be lean. And they tend, in general to not to have a huge amount of money in the bank at any given time. This usually isn’t a big problem until customers decide they’re going to pay late.
Late payment can have big knock-on impacts on small businesses. It can mean that they have to dip into their overdraft facility. And, in turn, this can negatively affect their credit rating.
That’s why there’s a lot of business owners use third-party companies to chase bad debt. Costs of these companies are usually low, and they can mean the difference between getting paid on time and not. Debt collection solicitors are an excellent way to put their fear of God into your clients and get them to pay up. It allows you to focus on growing your business and finding new opportunities in the marketplace.
The Carbon Trust has estimated that British businesses could save something like £300 million a year on their energy bills. A few simple energy-saving measures stand between them and windfall cost savings. And when you consider the fact that computer monitor can cost up to £45 a year if it doesn’t have a standby mode, you can see how.
By far the biggest culprits are computers, data centres, and lightbulbs. But there are solutions. Computers can be fitted with low power Intel T-branded chips which use only a few watts each. And computers can be put into sleep mode when they aren’t in use. Data centres can use state of the art data centre cooling methods. And traditional light bulbs that require 40-60W can be replaced by LEDs that need 6-10W.
Use Large Letters, Not Packages
It may sound surprising, but one of the most significant costs many small businesses have is the cost of post. But it’s not surprising that postal costs add up over the course of a month when the average package costs about £2.93 to send. Sending out just a thousand packages each month can often end up costing a business more than it pays on rent. So, it’s a big cost.
But there is a solution. Rather than using a package, you might be able to switch to what the Royal Mail calls “large letter” format. It’s still A4 in size. But, unlike packages, it costs 85p, for a saving of £2.08.
Stop Buying For A Month
Many businesses have a stationery account. And it’s a big drain. Take a month off from buying stationery every now and again. You’ll be amazed at all the paper staff can find in desk drawers and on shelves.