Top tips for a more frugal business

Running a successful business is about finding the right balance between money coming in and money going out. As much as you should strive to increase income, cutting back on expenditure is equally as important. With this in mind, here are some top tips on how to run a frugal business.

 

Go paperless

Swap out your filing cabinets for cloud storage. Tablets can replace notepads and slide shows and computer presentations can stand in for handouts. It involves laying out some cash in the beginning but over time you’ll recoup your investment. Plus, it has the distinct advantage of being good for the environment.

Find free apps

Why pay for software when there are almost always free apps available that do the same thing? This includes everything from calendars to email, even accounting apps and staff rotas. Software programmes can cost a fortune so eliminating this outlay could save valuable money.

Use freelancers or bank staff

Salaried staff are essential to your company, as they are the beating heart of operations. But salary packages and holiday pay are expensive. Where you can, outsource or use remote workers and you could cut back on one of your biggest expenditures.

 

Split the costs

If you are operating in a shared workspace or use the same facilities as other companies, why not split the cost? This could include everything from a receptionist to safety equipment like evac chairs. This way you still get the benefits but don’t have to shell out all by yourself.

Expand slowly

If things are going well, it can be easy to get carried away and try to grow too quickly. This often involves getting big loans, taking on new staff and generally overstretching yourself. Take the time to grow and, most importantly, stick to your original business plan with clear and defined goals. This will help you to keep control of your finances and keep spending under control.

 Better trained staff

Staff who know what they are doing are not only more productive, they are also happier in their jobs. This has an incredible impact on overall performance, with some estimates putting the boost at as much as 20%. Train, and train well, you’ll soon see the results on the balance sheet.