Seven ways business owners can reduce costs to help prevent debts
By Mr Bankruptcy
3rd April 2023
It seems a day doesn’t go by without being reminded how financially tough it is for businesses of any size.
Many owners will be feeling financial pressure for the foreseeable future, so here are some ways you can reduce your business costs to help prevent getting into debt or letting it get worse.
Seven tips for reducing your business costs
- Review and revise your budget: It’s vital to track how you’re doing against your financial targets, to spot early signs of trouble and make any adjustments early. It also instils the good habit of keeping control of your finances to prevent unmanageable debts from developing.
- Look for cheaper premises: Business space can be costly, so consider alternatives such as shared facilities, downsizing or negotiating with your landlord. You may also want to consider home working now that technology has made it an easier and more cost-effective option.
- Review costs of services: It’s easy with rolling contracts for items, such as broadband, equipment hire and insurances, to let them simply renew automatically; but you may be able to save substantial cost by shopping around before renewing.
- Share equipment: Pooling resources and equipment or swapping skills are great ways to build a local business community and support each other while also saving costs on services you would otherwise have to buy in.
- Find alternative ways to staff projects: Employing people yourself isn’t the only way to staff a project. Many freelance workers are very experienced and may be able to offer you greater flexibility while also enabling you to save on the cost of directly employing someone. You should also consider employing workers part-time so that you can attract a broader pool of talent.
- Avoid unnecessary charges: If you have credit facilities or other existing debts, interest rates and late payments fees can quickly add up and will continue to increase your debt. Keeping on top of debts and making sure they are managed is very important when it comes to reducing their cost.
- Use tax relief options: The Government offers a range of tax relief schemes to encourage businesses to continue investment and growth, even in the most challenging of times. For example, in the recent budget, the government announced an increase in the Annual Investment Allowance and 12 investment zones where business will benefit from a range of financial support for a five-year period.
Any reduction in cost can make a big difference to debt in the long run, so take the opportunity to review all aspects of your business and the financial support available.
James Rosa Associates
James Rosa associates is a firm of debt advisors and debt adjustors. With a supportive and friendly approach, we offer a full range of advice and professional services to individuals and business owners/directors who face unmanageable debt or who are involved in civil or commercial disputes. We provide:
We are fully authorised and regulated by the Financial Conduct Authority (FRN665061) to work with clients to produce bespoke solutions to fit their specific circumstances.
Find out if you qualify for a free consultation
If you want to deal with an unmanageable debt, or bring a dispute to a swift and cost-effective resolution, contact James Rosa Associates, ring 0845 6807217 or email enquiries@jamesrosa.co.uk to find out whether you qualify for a free consultation.
Please be advised that all views expressed in these posts are those of the author and not of James Rosa Associates ltd.