If you are in charge of running a business, particularly in notoriously pricey London, then you are probably eager to reduce your costs as much as possible.
The good news is that you can use plenty of tips and tricks to lower your operating costs while still being sure to maximise your resources. From introducing energy-saving strategies and water-saving devices, to switching suppliers, and educating your staff on improving efficiency, you have plenty of tools at your disposal.
Read on to find out more, and start employing these effective techniques in your business operations from now on to reduce your expenditure across all areas of your company.
First Things First: Establish Your Budget
Before you start looking for ways to cut down on your costs, it’s important to set a monthly budget for your business. To do this, you need to consider your average monthly income and weigh it against the various bills and subscriptions you are currently paying. Once you have done this, you can establish how much your budget should be per month.
While you don’t want to overspend, bear in mind that it’s also important not to prune too severely, as some of your costs may be crucial and, therefore, unavoidable. You don’t want to compromise your business by making drastic cuts.
Weigh up the various bills you are paying and the services you use, and only focus on the ones that can be reduced without harming your business, while still sticking to your new budget.
Find Ways To Reduce Your Water And Energy Bills
Arguably the most obvious way to reduce your operating costs is to cut down on the resources that you are using.
Take some time to evaluate your daily business practices and those of your staff. You may come to realise that you are actually wasting both electricity and water, and therefore paying unnecessary bills. Fortunately, cutting down on your consumption doesn’t have to be complicated or expensive.
For instance, if you want to lower your electricity usage, you must make sure that any device or machine that’s not being used is switched off until it is needed. You should also ensure that no lights are left on unnecessarily, and you can swap out your existing light bulbs for more efficient energy-saving options.
When it comes to water conservation, you might want to think about investing in a few helpful devices. A water meter is a key money-saving device, as it will record your exact water usage. This means that you will get bills appropriate to the amount of water you have consumed, rather than the sum determined by your supplier’s estimate.
Water-conserving toilets and taps are also an option to consider, as they can significantly reduce your water consumption over time. As a result, although they require an upfront investment, once installed, they will repay you over the ensuing months by consistently reducing your water bills.
Compare Business Water Rates And Energy Suppliers
As well as finding ways to lower your usage of different essential utilities, another effective strategy you can use is to switch suppliers, as you may not currently be getting the best rates from your current supplier.
If you would like to consider this as an option, then the first thing you need to do is find out how much you are paying on a monthly basis. The next step is to compare those costs with the rates offered by other suppliers, to see if you are getting a fair deal or not.
For example, you can compare business water contracts from a wide range of trusted suppliers with the help of The Business Water Shop. If you find a supplier that offers more favourable rates, you can then opt to switch, which The Business Water Shop will take care of on your behalf, to save you the hassle.
Once you’ve changed your suppliers – whether it’s for water, gas, or electricity – you might also want to think about your payment method. Check if your new supplier provides a discount for clients who pay via Direct Debit. After all, you may as well take advantage of any extra money-saving opportunities that come your way.
Reduce Unnecessary Waste
With UK businesses generating millions of tonnes of waste each year, the companies and services in charge of the removal and disposal of this waste can earn a pretty penny. The Government also takes a significant cut, as a result of the landfill tax, which costs almost £100 per tonne. Then there is the cost of bin hire and the waste transfer charges that businesses face, among other costs.
When you add all this up, it can add up to several percent of your annual turnover. If this is a worrying number, don’t worry – there are a few things you can do to help lower the costs of your waste handling and disposal.
For one thing, you can ensure that your business does more recycling, which will cut down on the amount of waste you need to dispose of, and, of course, has profound environmental benefits.
You can also try to reduce your usage of single-use plastics, which have to be continually thrown out and replaced.
Finally, if you are paying for your bins to be emptied on a weekly basis even though they often aren’t full, then you may want to renegotiate your schedule with your supplier. Only paying for your bins to be emptied when they are actually full can significantly lower your operating costs.
Make The Most Of Technological Solutions
As well as investing in energy-saving devices and finding ways to reduce our consumption of utilities, businesses can also make the most of technological advances to help them lower their operating costs.
For example, by automating more of your business processes – such as invoicing and organising your payroll – you can make savings on supplies such as ink and paper, not to mention postage. It goes without saying that becoming a paperless workplace is also much more environmentally friendly.
Thanks to the sheer variety of online solutions available, you can employ different software solutions for the majority of your HR tasks, rather than outsourcing them to another company and having to pay for them to be completed.
You can even use technology to reduce the number of employees your business requires. For example, artificial intelligence can be employed on your company website to answer queries from potential customers, so you don’t need to pay the salaries of customer service staff members.
Try Hybrid Or Remote Working
If your business is facing significant struggles, perhaps due to the rising cost of energy or simply a downturn in the market, then you may want to consider introducing hybrid or remote working for your employees.
By doing this, you can give up your pricey rented offices, thereby saving you a substantial amount of money, or swap your independent commercial property for a shared workspace, which will cut down on the bills.
However, you may find that adopting an entirely remote working model offers a number of benefits. Besides removing your commercial rental payments, you will also save money on office supplies and equipment, as your staff members can work from home with their own computers and Internet connection.
Final Thoughts
These days, with the cost of doing business in the UK rising, it’s more important than ever to find ways to cut down on your operating costs.
Fortunately, there are plenty of methods you can employ to help reduce your business expenditure. While not all of these options may work for you, you should still be able to find a number of suitable swaps and investments that will benefit your business in the long run and help you save a significant amount of money.
