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Tuesday, 21 January 2020
Agent Resource Center
Agent Resource Center

Tips for Small and Medium Enterprises to Keep Running Costs Down

Written by Posted On Friday, 01 November 2019 00:11

Small and medium enterprises (SME) can feel the effects of running costs more than large businesses. They usually have less turnover but still have wages to pay, and other overheads such as communication expenses and utility bills. Larger companies often have the volume of sales to absorb these costs with less of a financial impact, but as any small business owner will tell you, it is the overheads that can make the difference between success and failure. Keeping running costs as low as possible is important, and here are a few ideas that may help.

Outsourcing

When you start to employ people, you not only have their wages to consider; there is holiday pay, sick pay, maternity pay and all the other legal responsibilities that come with being an employer. There will always be some tasks that can be outsourced to freelancers, such as bookkeeping, payroll, accounts, social media management, website management and many others. When you outsource, you only pay for completed work and do not have to consider any of the other things attached to employees. It gives you access to expertise that you might not otherwise be able to afford and can help to keep your ‘wages’ bill down. There are many online sites that help businesses connect with the freelancers they may need.

Energy Bills

The first thing to consider if you want to reduce your energy bills is where most gas and electricity is being used. It is very easy for staff to be wasteful with energy, and it is a good idea to involve them in coming up with ways to make your business more energy efficient.

It is also wise to look at and compare SME energy prices, as they can vary greatly from supplier to supplier. Paying too much for your energy supplies is not unusual, but at sites like Utility Bidder, you can find the best deals for gas and electricity and also for water and telecoms services.

Make Technology Your Friend

Technology can make your business more efficient at very little cost. It allows you to automate some of the mundane tasks that can be time-consuming and not cost effective. There are so many things that you can download software for that will take over jobs that previously had to be done manually.

Customer services, time tracking tools, teleconferences, diaries, presentations, graphics and hundreds of other things can now be completed simply and quickly online, thanks to technology. Open-source software, for instance, typically does not require huge financial investment and is flexible enough for it to be adapted to suit any business.

Keep Your Running Costs Down

Regardless of how good your gross profit margins are, you will soon see the money disappear if your overheads are too high. Then the bottom line of your accounts could easily show a loss, and that defeats the object of being in business to start with. Take these tips on board and see how much you can lower your costs by.

Listing Additional Info

  • State: Alabama
  • Address: 1231 Highland Ave., Ste. 106 #247
  • City: Rancho Cucamonga
  • Zipcode: 91739
  • SOLD: no
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