Small Business Advice – Reducing Operating Costs

reducing operating costsAre you an SME or a start-up business? If so, you will be well aware of the ever increasing challenge of reducing operating costs of your business, both here in the UK and abroad. Last year, 59% of SME business owners revealed that their operating costs have increased from the previous year, and thus, they haven’t been able to pass any savings onto their customers.

Mike Randall – CEO of Close Brothers Asset Finance has said: “Operating costs have increased significantly over the past few years and are arguably one of the most difficult things for small business owners to manage in the current climate.

We work with businesses across a range of sectors and we can see that they are all concerned about operating costs, which is unsurprising given the energy requirements, raw materials and machinery that many require.”

Tips for Reducing Operating Costs

1. Shop around for better deals – Whether it be your phone and broadband supplier, energy supplier or paper supplier, there are great saving to be made when you shop around and barter for the best possible price. Too many business owners just accept that the price is the price, leaving no room for maneuver. The fact is, that if you shop around, you can use once price as leverage to get a better price somewhere else. You will almost always be able to get a percentage off the original price if you haggle.

2. Determine your business needs – Many new business owners buy office equipment and machinery before they have even evaluated a sincere need for them. It’s best to rent out some of these items and see does your business have a genuine need for them. This will allow you to try before you buy and if there is, in fact, a strong need for such equipment within your business, then by all means purchase them.

3. Reduce Advertising with Brand Advocates – The price of advertising locally, whether it be newspaper or radio etc, can be very expensive. Business owners sometimes forget that the best type of advertising/marketing is by word of mouth. People that have had a great experience with your product or service can act as brand advocates and “big-up” your business. Use incentives – get these brand advocates to share reviews online and talk positively about your business on social media. People are a lot more likely to believe a regular customers opinion over that of someone who works for a business.

Reducing Operating Costs – Go4 Communications

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