One of the primary reasons for businesses going bankrupt is that they are not good at controlling their finances. As costs are not properly controlled, cash flow inevitably suffers and, without enough money in the bank, the business soon fails. Therefore, it's no surprise, especially in the current economic climate, that lots of organizations are looking for practical ways that they can reduce their expenditure. There are a number ways to do that, with these being a good place to start:
Utilities - Don't miss out on savings by neglecting to compare your current gas and electricity providers with other carriers. Using a broker will provide a wide range of tariffs, enabling more savings opportunities. This requires little effort and can lead to big savings. If you choose to switch providers, be aware of the proper time to provide a cancellation notice to your current provider so you do not get locked in to another long contract.
Outsourcing - Areas of the business such as IT, HR, and finance may be outsourced in order to reduce costs. Manufacturing, distribution, customer service, and marketing may also be outsourced to places such as India or the Philippines depending on the industry.
Banking - Simply reviewing your bank charges can save a lot of money in the long run. Charges are not concrete and should be reviewed because banks stand to profit from your business. Look at your interest rate and see if any accounts are received in credit. Paying a higher monthly fee for an upper tier online service may also be cheaper than paying other types of transaction fees.
Business Rates - Rates change over time and they can be challenged every five years. If you feel comfortable, you can challenge them yourself or you can hire a consultant. When using a consultant, however, be sure that you are not charged up front and that the charges are based only on savings to your account. The biggest mistake is to assume your business rates don't change.
Telecoms - As a results of the telecoms market becoming deregulated, there's plenty of companies competing for your business. You should be able to easily save 10-15% off your line rental if you're with a large provider, and often even more on call charges too. Always remember to compare like for like rates and review your provider and their competitors on a six monthly basis.
Office Stationery - It pays to consolidate your all of your suppliers, as buying from one source will increase your negotiating power. Being part of a buying group with companies that you're friendly with will increase this further. Assign someone to monitor usage of items in your company and and limit the amount of people who have the authority to order new supplies.
Utilities - Don't miss out on savings by neglecting to compare your current gas and electricity providers with other carriers. Using a broker will provide a wide range of tariffs, enabling more savings opportunities. This requires little effort and can lead to big savings. If you choose to switch providers, be aware of the proper time to provide a cancellation notice to your current provider so you do not get locked in to another long contract.
Outsourcing - Areas of the business such as IT, HR, and finance may be outsourced in order to reduce costs. Manufacturing, distribution, customer service, and marketing may also be outsourced to places such as India or the Philippines depending on the industry.
Banking - Simply reviewing your bank charges can save a lot of money in the long run. Charges are not concrete and should be reviewed because banks stand to profit from your business. Look at your interest rate and see if any accounts are received in credit. Paying a higher monthly fee for an upper tier online service may also be cheaper than paying other types of transaction fees.
Business Rates - Rates change over time and they can be challenged every five years. If you feel comfortable, you can challenge them yourself or you can hire a consultant. When using a consultant, however, be sure that you are not charged up front and that the charges are based only on savings to your account. The biggest mistake is to assume your business rates don't change.
Telecoms - As a results of the telecoms market becoming deregulated, there's plenty of companies competing for your business. You should be able to easily save 10-15% off your line rental if you're with a large provider, and often even more on call charges too. Always remember to compare like for like rates and review your provider and their competitors on a six monthly basis.
Office Stationery - It pays to consolidate your all of your suppliers, as buying from one source will increase your negotiating power. Being part of a buying group with companies that you're friendly with will increase this further. Assign someone to monitor usage of items in your company and and limit the amount of people who have the authority to order new supplies.
