So, in 2023 it seems like the price of everything is continuing to rise, including your business costs. From gas and petrol, to housing and food, 2023 is looking to be pretty expensive all round for individuals.
It goes without saying that it will be no different for businesses – Companies across the UK will continue to see a rise in costs throughout 2023 and the cost of running a business will undoubtedly put pressure businesses to raise their prices to customers in order to survive. So, what can your business do to save money?
There are numerous ways to do this, but in this blog we are going to focus on three key tips.
Our first tip is to look at your stock purchasing and try to produce an estimate of your likely consumption in the next 6 or 12 months. Talk with your stock suppliers to try to get a discounted rate, based on an agreed future level of regular purchasing. This way you should be able to put yourself in the best position to negotiate the best prices over the long term.
The continuing rise in energy bills has seen companies take quite the hit so far this year, so our second tip is to be mindful of just how much electricity your business is using. First, try and figure out where your main areas of consumption lie. From there you can work out which machinery/electrical items can be replaced with newer, more efficient items to help ensure those electricity bills are minimised. Common examples of this would be replacing all lighting with LED lighting, replacing heaters with newer, more efficient models and replacing your fleet with electric vehicles. Look into utilising your roof space for solar panels and electric battery storage.
The third tip for saving your business money revolves around making sure your employees are happy in their jobs. The pandemic has seen a change in mindset for employees. As the world has become more open-minded and flexible in the workplace, employees have, rightly begun to expect more from their employer. Keeping your staff turnover to a minimum reduces administration, recruitment and staff training costs. Ensuring that you as a business embrace the new flexible workplace will be key to employee retention. After all, without employees, your business will not run. Providing a flexible work environment reduces staff turnover and increases productivity, which benefits everyone.
These three key business tips are a great place to start when looking at how to save on company costs in 2023. With the right cuts in the right places, your business can focus on hitting those KPIs for the rest of 2023. We also suggest keeping a close eye on the latest updates and price rises to stay ahead of the curve.
Happy saving!
