Published on January 24th, 2014 | by admin
Money-Saving Tips For SMEs
For most SMEs, reducing costs and aspiring to growth will be two key objectives for the year ahead. So with this is mind we’ve put together a list of five quick money-saving tips as a starting point.
1. Staff costs
Staffing decisions are often undertaken in the first quarter of any year as people either find new positions or a company looks for new talent.
For an employer, resisting the urge to immediately replace a departing employee can prove fruitful. Often a skills or resource gap can actually be filled by an ambitious member of staff thus saving on the costs associated with the recruitment process such as advertising and using agencies. If there is no alternative to embarking on the recruitment of a new staff member, encouraging employees to be headhunters and rewarding them accordingly can be a very prudent approach.
2. Save power
According to the Carbon Trust, British businesses could save £300m per year through simple steps to reduce energy use. Tellingly, whilst nearly all workers (92%) have stated that they are concerned by the cost of energy at home, less than half (47%) think about their employer’s bills.
It seems in many instances that employees need to be actively encouraged to take energy saving measures at work such as remembering to shut computers down overnight. The installation of LED lights will reap future savings for an employer whilst careful control of heating only the parts of the office when they are populated is wise.
3. Large letter savings
A simple review of what postal supplies a business actually requires to send out their mail can provide startling cost savings for a small business owner. To illustrate the point, a glance at the Royal Mail postage tariffs reveals a stark contrast in price between sending a ‘large letter’ as opposed to a ‘packet’ for instance.
4. Review buying requirements
Assessing office supplies needs and encouraging staff to identify existing stocks of paper and stationery which may be lurking in desk drawers and cupboards is a sensible approach before embarking on a new order.
5. Address bad debt
A common bone of contention for any business is the need to chase bad debt. As well as a drain on resources, it often means a business incurs interest charges after dipping into overdraft facilities and can also have a knock on effect on their credit rating too. As well as implementing due diligence when selecting suppliers, it can also be cost effective to use debt collection solicitors we learn.