Starting a new company is a huge investment in time, stress and finances. And as long as you have the drive to expand and create a larger, more established business, there’ll never be enough money.
Business owners are often ridiculed as being “tight” when they process small accounting items with little worth; however, after months or years of trading, these small purchases can really add up. Think about it, if you purchase a budget line rental plan that’s £10 cheaper than the next plan, you’ll save £120 per year; put into perspective, that’s enough to buy a tablet computer or pay for the entire year’s supply of coffee and tea for the office.
A good friend of mine named Ian McCartney, owns a company that sells shrink wrap machines called Kempner. For years Ian tried and tested plenty of methods to boost revenue, but to no avail. Eventually he started focusing more of his attention on making savings and it proved to be the turning point for his business.
Start taking action
Do not underestimate how effective it can be when saving just a pound or two here and there – it all adds up as my mum used to tell me. While you may not make a significant amount of cash straight away, opening a reserve account and letting the excess money pour in each month will start to add up.
If you want to get started look at your monthly outgoings; phone bills, water bills, fuel costs, etc. If you’re really serious, then you may even want to consider changing premises. Even if you can only save a few pounds per month in these departments, it’s certainly worth an hour of your time.
Secondly, start capping usage on virtually everything. If something is readily available, people will use it. For example, if you have coffee and tea bags in the office kitchen, buy in bulk and only put out one fresh box each week. Eventually your workers will start to realize that they can’t take an hourly coffee break if they want it to last the whole week. Think about everything from your stationary supply to your water cups.
Sometimes it takes a little money to make money. If you’re replacing disposable plastic cutlery and paper plates with reusable alternatives, it will cost, but over time the investment will pay off and you’ll make huge gains. Start making changes today and you’ll be surprised where it might lead.
Aaron Hopkins is a professional writer.
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