It’s not always the big businesses expenses that you need to look out for. Sometimes the smaller costs can add up and have just as much of a negative effect on your finances. Here are just a few small costs that could be worth reducing.
Modern companies can spend huge amounts on office supplies like paper and ink. When shopping for these resources, avoid high street shops. You can buy supplies such as HP 302 ink cartridges online for much cheaper. Buying online also gives you the option to buy in bulk, where you’ll often save a lot of money. Of course, you may even be able to eliminate these costs entirely by going paperless – with most information now easy to share online (you can even sign contracts digitally) there’s little need in many cases to stock up on paper and ink.
Unnecessary software subscriptions
Many companies can waste huge amounts of money on unused software. A monthly subscription fee of £10 may not seem like a lot – but consider the fact that this is £120 a year that could be spent elsewhere and it can then start to seem like a lot of money wasted. Cancel your subscriptions to these programmes immediately and cancel any direct debits with your bank.
Excess electricity usage
Running a business often requires owning lots of machinery, which can result in high electricity bills. A simple way in which you could cut cost could be to ensure that all machines are unplugged/turned off at the plug when you leave the office – the energy spent by simply keeping these machines connected could add up to as much as £100 in a year. You can take further steps to lower your energy bills by investing in energy-efficient machinery. For example, PCs such as the Dell Optiplex 7040M are likely to use only £4.45 worth of electricity in a year – which is pretty cheap considering the average computer uses up £24 worth of electricity annually.
For some companies, travel is a necessity. However, for many office-based companies, there’s often very little need to leave the office. Whilst you may be eager to get away from the confines of your workplace, travelling to that meeting across the country could be a huge unnecessary expense – especially when you could talk via videoconferencing for free. Consider whether you really need to spend huge amounts in fuel/public transports costs to attend that next meeting, or whether you’d be better off staying in your office and talking via Skype.
Business debt interest
If you’ve got business debts, beware of the interest rates. As with any debt, interest can result in you spending huge amounts in the long run. Take measures to pay off your debts as soon as possible. If interest rates are exceptionally high, look into refinancing options that could allow you to pay off the amount with a lower interest loan.