How To Improve Your Business Finances in 2018

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Posted byMairead Finlay | Category Uncategorized | Date 06 March 2018

How businesses can save money in 2018

Were you aware that nearly half of all business fail as a result of financial issues? Unfortunately, those are currently the statistics for companies across the globe. If you run a company, you will know that there are many things to consider, including numerous costs and if you don’t keep a track of them they can easily spiral out of control and even potentially damage your financial position.  Trying to save money should always be a top priority, but at Guarantor Loans, we know that can be easier said than done when you are trying to balancing so many other things too such as developing your client base, balancing customer demands as well as maintaining your position as a competitive business.

It is for that very reason that it is essential that you try to balance and maintain a business budget and it it is something you should make one of your top company priorities this year, and there are different ways that you can save money – some easier than not, however, they all have clear benefits. Reducing business costs in 2018 means that:

  • The chance of your business succeeding as a profitable business will increase
  • Saving money now could help weather downtimes in your business. For example,  if you are waiting for invoices from clients, or due to seasonal fluctuation
  • It can reduce stress, as any savings you make from the business can be put aside for company emergencies
  • Saving money means that you can potentially consider expanding your existing operations

If you are considering finding ways to save money in 2018 but not sure where to start, here is our guide on some of the best ways you can cut company sots this year, so you can continue to thrive and develop in the following months

Have you ever considered hot-desking?

Hot-desking is definitely worth considering if you are serious about cutting down on costs. Why? Well, did you know you could potentially save a staggering £6,000 on each and every desk?  This equates to around £34 billion if all businesses tried hot-desking across the UK, according to research in 2016 conducted by Vodafone. But what exactly is hot-desking, we hear you ask? In summary, hot-desking works by allocating desks as and when they are needed. This means that it is likely that company bosses will ask their employees to work from home instead, and if you are hesitant on this prospect to consider the following: allowing your employees to work remotely could save the company a considerable amount when it comes to property and desk costs. In additional research carried out regarding the benefits of hot-desking, reports have shown that by encouraging flexible working, it tends to encourage more productivity within the workforce. For example, it has been proven in numerous studies that employees tend to be more productive. This is down to a number of factors. For example, people don’t have to spend both their time and energy on commuting, nor do they have to face the potential interruptions they may otherwise experience in an office during a working day. Unsurprisingly, this has a knock-on effect on absence rates. Remote workers have a lower rate of absence than those who work in offices.

Be savvy with office supplies cost and save potentially hundreds of pounds for your business this year

Don’t forget to consider one of the easiest ways of saving money on your businesses finances this year. One of the simplest ways to cut down on costs this year for your business it to be savvier when it comes to buying office supplies. What seems to be small, inexpensive costs can quickly end up costing you hundreds yearly if you aren’t considering carefully what it is exactly you are buying. A way in which you could potentially save money over the course of the year includes buying essentials in bulk, such as pens, paper and so forth. 

You should also consider some of the following when it comes to office supplies, such as whether or not buying brand new office furniture is entirely necessary, or whether it will suffice that you buy it second-hand. Furthermore, have you ever considered buying recycled printer cartridges  (that are often much cheaper) or even better can all the necessary documentation be saved or sent electronically to save on ink and also be more environmentally friendly?

Using smart technology at work

Another excellent way you can reduce finance costs is could looking at smart technology.  Why not try downloading software on free sites such as download.com, try free trials of software you are considering buying before you pay for it to see if it is right for you, or you could try using The Cloud, which could end up saving you a fortune on computing costs.

If you want to save on energy bills in your business, have you considered installing integrated building management systems to save on energy bills?

Having an integrated building management system on your business premises could be well worth considering, as you may be able to halve your energy bills…yes, halve! Having one of these control systems in your building (if you are wondering how this works,  it is through processes such as heating, security and lighting systems which could end up helping you cut your overall electricity and gas bill by over 50%!). Consequently, if your business operates within a large open work space then deciding to use hot desking could be a brilliant way in order to save money this year. However, it is important you check with the landlord of the property before making changes to the building, should you be interested in doing so, otherwise you could end up in hot water!

Other ways that you could potentially save on business gas and electricity bills  which could save you up to £1,200

If you are a Small or Medium Enterprise there are other ways you can make considerable savings on your energy bills that are worth considering in the new year.

  • If you are a limited company it is possible to check and compare energy providers in much the same way as if it was for your domestic bills , and it is worth looking at.
  • If you are a sole trader working from home you could also deduct some of your electricity bills as an expense.