Controlling spending within a business can be tricky. New staff, unexpected overheads, pension payments and the goals to expand a business are the tip of the iceberg when it comes to business budgets. Here, we’ll look at everything from cutting wasted spend to choosing the right business cash advance, in order to push a business forward and save money.
Audit Overheads and Supplier Costs
Whether you’re working with vendors, suppliers or outsourced companies – always consider your bottom line. Negotiate on all costs and don’t be afraid to switch suppliers if you think better value for money can be sought elsewhere. Regular reviews of suppliers, for return on investment, should be carried out.
Take the Right Type of Investment
If a third party investor approaches you, you would always consider whether they are a right fit for your business and what else, beyond cash, can be offered. The same thorough process should be present when targeting investment from loans to increase cash within a business for products. Merchant cash advances, for example, offer no APR and payments will change based on your income, whereas a traditional bank loan requires parts of a business for security and even if you have a slow month, payments will need to be made. See the full difference here.
Embrace Technology – Time is Money
The cloud is the place to be in 2016. A business should be online and accessible wherever you are. Managing accounts, emails and relationships on the cloud is not only cost effective it is also time effective. In 2016, many cloud solutions are guaranteed for security, so customer details will remain safe.
There will always be an element of risk to a new hire within a company. Thinking about a hire can bring very fruitful results. All hires within a company do not need to be hugely experienced. A recent graduate or somebody looking for a job, who you feel is smart enough to do a real and aligned with business goals, could be hired at a reduced cost. With this, you can train them to do a job role which fits your business and their career goals perfectly.
Spend in Cycles and Reduce
Finally, consider monthly or quarterly budgets and monitor all spending at this time. Aim to reduce these costs by 5% over the next period – in line with income – and improve net profits across the business as time progresses.