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5 Tips To Reduce Small Business Running Costs

Posted: 11 March 2019

5 Tips To Reduce Small Business Running Costs

Owning a small business offers many advantages such as flexibility, close customer relations and the ability to adapt easier. In the same breath, small businesses also face many challenges and are often overwhelmed by operating costs. A lack of capital is a large contributing factor to the failure of a small business when the going gets tough. At Storage King, we understand that when a business is small it can be more difficult to turn over huge profits, meaning that there is limited cash available to solve certain problems that may arise.

The good news is that there are ways to prepare for difficult times and cut down on operational costs. Small businesses need to develop a sustainable business model in order for their operations to run efficiently. Streamlining expenses and prioritising work ventures should be a top priority.

Our experience working alongside small businesses as they journey through their growth and changes allows us to share some lessons learnt and offer a number of ways in which your small business can reduce their overall running costs.

  1. Outsource certain functions

As a small-business owner, one can take advantage of consultants or freelancers at a much lower cost than hiring someone full-time. Certain operations are often dealt with better when the work is outsourced and as a result you can focus more directly on your key priorities. Many small businesses benefit financially by outsourcing the likes of marketing, bookkeeping, legal work and certain operational functions.

  1. Reduce overall office costs

It should be the goal of every business to be efficient with the space they operate in. Every area of space should be utilised for a specific purpose. If there is space wasted, it may mean the current location needs to be reassessed and the move made to either a larger or smaller premises. One option is to try negotiating better lease terms, while another option is to move into a home office space or even go mobile. Today, many small businesses are taking advantage of business self storage solutions to assist with cutting costs and growing their business.

  1. Utilise a self storage unit

This is certainly one of the most favourable strategies for reducing your small business’ running costs. With reference to reducing overall office costs, self storage is an incredibly cost-effective solution. During a time of growth, many small businesses use the flexibility and convenience of a self storage unit to store excess stock or archives without committing to a higher rental. When the business is still new, or going through a financially demanding season, businesses will move their head operations to a storage unit. Self storage facilities offer safe and convenient units that are offered in a variety of shapes and sizes to best suit your business needs.

  1. Ask for discounts

Although business is competitive and profit is the focus, it does not mean that certain companies will not be interested in striking a deal on discounted rates for certain goods and services, and so it is always worth attempting to negotiate on certain costs. Due to loyalty and ongoing relationships, small businesses often find that suppliers are willing to give discounts below retail price.

  1. Barter goods and services

Finally, consider bartering goods and services with other small businesses. Many entrepreneurs are willing to help one another out as they are always looking to reduce costs where possible. One small business may have a set of skills that another doesn’t have and can’t afford and vice versa. By offering trade exchange, small businesses can help each other without having to exchange money.

There are many different ways that a small-business owner can reduce costs. It is important to examine all possible solutions in order to gain the best outcome. We have seen countless businesses save money and grow their businesses by using our services. Unsure of how much space you need? Our storage size estimator and flexible storage agreements mean that you only pay for the amount of space that you need for as long as you need it. Call us on 0800 0852 954 for more information.

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