SMEs are often so occupied with expansion and growth that they forget about shaving off unnecessary expenses and saving money to fuel that growth more sustainably, at a later stage and when the business is actually steady enough to take that next step.
Today we are going to go back to the basics and reconsider a few key business expenses that are common to most companies. Let’s find out if the associated costs can be reduced to save money, without hampering productivity.
How Much Office Space Do You Really Need?
Most offices in the United Kingdom could be saving money by shifting to a smaller floor. If you are located in a prime city like London or Birmingham, the cost saved in rent per month will likely be significant enough to make a big difference.
You Can Expand Your Workforce, without a Bigger Office
Even when the business needs expansion of the workforce, it doesn’t automatically mean you need a bigger office. All employees do not have to be accommodated in the office, as some of them can work from their own places via a remote office environment.
The technology is there, so why not take advantage of it in reducing your monthly office rent? It won’t be applicable for all kinds of work of course, but keeping the rent down is definitely possible if you simply allow a good number of your new employees to work from their homes. As a matter of fact, even the bigger companies are beginning to understand the advantages of a digital office model and adopting it quite vehemently.
It is Possible to Reduce Your Energy Expenses?
All businesses in general are losing more money to pay their electricity bills than before. The cost of oil and gas has increased continuously in the UK over the last few years which, in turn, has resulted in energy price hikes as well. However, it is possible to get a cheaper contract from your current business energy provider if you use the services of a professional negotiator.
Compare various quotes from all the energy suppliers in your area on a site like Utility Bidder to see who offers you the best deal. If you are already some way into a contract, be sure to notify the energy provider in advance (at least 60 days) that you won’t be opting for the autorenewal. Now, even if you are currently satisfied with the services provided to you, by not renewing the contract, you immediately open the provider up for negotiations, allowing comparison sites to get a cheaper quote from them as well.
It is both understandable and relatable when an entrepreneur wishes to grow their organisation fast. The fact on the other hand is that unless that growth is backed up by a solid framework, it cannot be sustainable. When a business grows in size and operation, so do its expenses, meaning that if the basic model wasn’t very profitable to begin with, nothing will change just because it has expanded.