Running a business requires a range of different skills, and the successful small business owner will be effective at switching between these different disciplines. Arguably one of the most important is financial management, particularly during the early phases when resources are tight. This extends to things like keeping your overheads as low as possible, and there are many areas in which bills can start to become a problem. From your wage bill and rent costs through to utilities and phone bills, there are plenty of areas of expense before you even open your doors to the public. But how, as a business owner, can you keep track of these costs, with a view to reducing their overall impact on your business?
It goes without saying that every business owner needs a budget, and a projection of the expenditure over the short and long term. Keepingcontrol of the money flow is one of the important aspects of running your business – cash needs to come in on time to fund controlled expenditure and investment, and to keep the business running. This needs to be tracked at every stage of the business, down to individual expenses like energy and broadband costs. If you can keep these costs budgeted, accounted for and as low as possible, it should be easier to surpass the break-even point in the month en route to a profit.
Any fixed costs you incur in business are a dead-weight, and a financial burden to carry month on month. While some fixed costs will be productive for your business, there are others that simply need to be reduced as far as possible for optimum results. Energy, or phone and broadband bills are a good example. These are commodity services that your business definitely needs, but you don’t necessarily need to pay an expensive rate for them. Comparing different providers is a basic starting point, so you can find the cheapest deal for the service you need.Visit website comparisons to find the latest, most up-to-date information.
With your company phones, it may also be worth thinking about the line type you have installed. Companies operating down BT lines provide cheaper services than the monopolized cable network. However, these services are often not quite as fast or as reliable as cable offerings. Decide what matters most to your business and choose a line type accordingly. If you don’t have a line installed, there will also be a cost to pay for this installation, of no more than £150.
Running a tight financial ship is critical if you want your business to survive and thrive. This ethos needs to extend throughout your company, and that means finding savings wherever you possibly can. Utilities bills and the fixed costs of running your business are a good starting point. Any reduction in these costs will be felt month on month, in a positive way. By finding cheaper suppliers, switching to alternative line types or energy provision, it can be possible to cut back on the expenses of your business to save money every month.