In a recent study by the British Chamber of Commerce, more than half of businesses in the UK are experiencing significant cost pressure. As a result, three-quarters are increasing prices to try and cover costs. In order to combat the pressure, businesses should identify unnecessary spending and carry out a comprehensive spending analysis. This will enable them to forecast their future costs.
It’s no secret that running a business isn’t cheap. However, there are many hidden costs that a business can reduce. Love Energy Savings has identified the top five cost-cutting ideas that businesses can implement. By cutting costs, a business can increase profits and grow at the same time.
Energy audits can help businesses identify areas that can be improved. Tracking energy usage across different buildings, sites and departments can give a clear picture of where improvements can be made. You can use online spreadsheets or consult your energy provider. Then, you can determine how best to allocate the savings to make a positive impact on your bottom line.
Energy audits can be thorough or systematic, but both types can identify areas where you can make improvements. Some opportunities may require long-term solutions, while others may just be small tweaks to your business practices. The audit process also helps you build momentum, which can convince colleagues to make changes.
Alternative financial service providers
Aside from traditional banks, there are other types of financial service providers that can help businesses save money. For example, there are money lending services and payday loans. These are also called doorstep loans or home collected credit. There are some groups, such as Debt on Our Doorstep, that are trying to improve regulation and transparency in these services.
Interest rates on business savings accounts
Business savings accounts are a great way for small business owners to earn interest on their money. These accounts are available at your local bank branch and feature tiered interest rates. They are ideal for sole proprietors, partnerships, DBAs, nonprofits, and other small businesses. The APY rate will change based on how much money you have in your account, and there are many ways to get an even higher interest rate.
One of the best business savings accounts is the Bluevine business checking account. This account offers a higher APY than many business savings accounts and doesn’t charge a monthly fee. It offers a competitive 1.5% APY on balances of up to $100,000 and has no minimum balance requirement. You can also deposit cash at more than 90,000 Green Dot locations.
Budgeting for a recession
Small business owners have limited control over their overheads and need to prepare for a recession in advance. Inflation has driven rent and utility costs through the roof and the government has done little to help. In order to survive this crisis, business owners must make tactical moves that will help them build a strong defensible fort. Budgeting for a recession in business UK is crucial to ensure that you are able to cover all your expenses.
The first step in budgeting for a recession is to increase your emergency fund. This money should be adequate for three to six months of living expenses. In addition, you should contact your creditors for any hardship concessions they might be able to provide.