Keep Costs On Your Mind

Peninsula Team

January 15 2010

Whilst the recession has had a big impact on the UK and in some cases destroyed businesses, it has also educated employers about the importance of keeping their budgets tight and making the most out of every opportunity. With the economy now beginning to pick up, it is important that employers keep in mind some basic rules for cost saving to ensure they stay on top of their budget and keep it tight.

Utility bills are always costs that employers tend to think are invariable and they will willingly pay whatever is invoiced to them. Very often employers do not even know who their energy supplier is! However, this just is not the case and if employers shop around they will be able to find savings. Take a look at what you currently pay and the type of contract you have and assess its relevance to the type of business you operate. Business premises that are only operation for 12 hours a day, for instance, should shop around for an energy supplier who will supply cut price energy for half a day. Review your needs annually and see what offers are available to you.

Business expenses are a difficult area for employers to monitor, however where possible, you should plan for any occasion where expenses may need to be provided and look in advance at what you can do to minimise the cost to your business. Travel expenses are an area where big savings could be made through effective forward planning. If you know an event is forthcoming and you will need to attend, make your travel arrangements a priority. If you are choosing to go by train in particular, an advanced booking can save you up to 75%. Cheap flights can also be found by booking in advance, it is just about being a little more flexible with your timing. You need to be clear and precise about what employees can and cannot claim on their expenses. When providing meals to employees, is there a limit to the amount they are able to spend? These seem like over the top measures however the recession has taught us all to be less frivolous and keep an eye on costs and employees will learn to adapt to tighter measures being put in place.

Business partnerships are something that you should also keep in mind and they can be a great way of solving a problem without costs increasing. Look to find ways in which your business can benefit another and vice versa and approach them with a deal. With everyone wanting to keep costs down, you will find that many businesses are open to these partnerships as they offer firms a chance to receive specialist assistance at a nominal price. In these instances however it is always worth ensuring that the cost of what you would be offering doesn’t exceed the cost of hiring a specialist to perform the job.

These are just some basic principles to keep in mind. Regular budgetary reviews are essential as businesses look to grow in a tough economy, however the offers are out there, it is just a case of finding them.

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