Small and medium-sized enterprises often have limited budgets. Therefore, being able to save money and get the most from their resources is very important. Below are some top tips for saving money if you run an SME.
1. Review your current spending
Carrying out a thorough spending analysis is a great way to find potential savings. This kind of review will often identify subscriptions and memberships that are not giving value for money.
- Sell what you don’t use
Almost a natural follow-up to the first point is to look at selling any equipment that is not being utilised. Electrical items such as monitors or laptops, as well as unused furniture can all be sold via online marketplaces. Even if you only get a few pounds for it, it is better than having it sit doing nothing and this will also free up some space.
3. Look after your staff
Finding new staff is a costly and time-consuming process, so you can actually save money by looking after your existing team. You need to give them plenty of encouragement and reasons to stay, such as incentives, training and progression opportunities. It is also important to empower them and avoid micromanagement.
Directors personal guarantee
A directors personal guarantee, a legal document which makes a director liable for a company’s debts, can prove a valuable tool for SMEs because it gives suppliers or partners greater confidence as they know that there is less risk involved. Many firms that specialise in these guarantees and other similar legal frameworks have useful online resources, such as the examples seen here: https://www.parachutelaw.co.uk/director-guarantee.
4. Consider remote working
Office space is expensive, particularly in London where it is amongst the highest in Europe
If a central office space is not critical to your business, then there is potential to save money by switching to a remote-working model.
Not only does it save money on office rental and running costs, it can save money on travel and eliminate commuting time for all staff. If you need to hold in-person meetings, you can usually find office spaces that can be rented by the hour, or even use local coffee shops.
- Renegotiate
Call your suppliers (internet/phones, software, utilities, equipment) and tell them that you want a better deal. Gather information and other quotes beforehand so that you know what to ask for and what others are offering.
