20 ways to save money in your business

20 WAYS TO SAVE MONEY IN YOUR

BUSINESSBy Forbes Burton

INTRODUCTION

Can your company meet your bills as they land? Can your

company extend budget for stock or investments? Does your

company often find it’s required to make cutbacks in some

departments to financially support others?

Realistically if you find that your company has any issued

when it comes to finances then It is time to assess what that

means for you and your company.

1

You must set up a daily cash flow to control all cash in and

out; this may help protect you from wrongful trading, as it

stops bounced cheques.

2

Make sure that all purchases are approved by you or that

you are aware of approvals made.

You should sign all cheques or approve all BACS/CHAPS

payments.

3

Take time to evaluate purchase orders for yourself. If you

are not directly responsible for procurement, at least give

yourself chance to ensure your business is not paying over

the odds for goods or service.

4

If you or anyone in your business draws petty cash be sure

YOU know when and how much.

You could even set about such that no petty cash is drawn

from the bank unless you personally go and get it, makes

you question where every pound is spent.

5

Review all expenses claims by the staff and reject all that

are not really necessary.

This could also mean looking at where you spend the

businesses money.

6

Remember survival is key, do not worry if you lose people or

profits that are not vital, Profits will soon flow again from

using very tight cash flow management.

If cash is tight it means forcing tough decisions but don’t

back down.

7

Ask every supplier for a review of their prices, are they able

to cut you a better deal?

Also ask them for a few extra weeks payment grace, or ask

for regular monthly payments.

8

Speak to the landlord for a breather on rent. See if you are

able to pay monthly not quarterly for a while.

It actually puts you in arrears technically, but that’s ok at this

stage. Most landlords are very keen to retain their tenant.

9

Ask your accountants to accept monthly instalments.

It may be that you need someone to do your bookkeeping

for you.

10

Get someone else’s view, do you have a trusted friend or

mentor?

If so talk to them about your business. They may suggest

cost savings that you hadn’t thought of.

11

Do you need that company car?

Can you use your own personal car?

It may save you a lot of personal tax too.

12

Can you sell any assets to raise cash?

Make sure they're not owned by a leasing company first.

13

If you are factoring or invoice discounting, ask your factors

to cut their costs, only drawdown funds weekly.

14

Cut ALL overtime, why do you need it? Is your production

planning so poor or weak?

If you need more people hire them, at lower rates.

15

If you need to make redundancies and cannot afford them,

use the DBIS (DTI) Hardship Scheme.

16

Ask HMRC for a Time to Pay Deal.

17

Use the internet to buy or price everything you can get

fantastic value over the net.

18

Work all hours to build the recovery plan, it’s your business

and you are the one that can save it.

19

Keep minutes or notes of all decisions and action plans.

It’s essential that no idea is forgotten, it saves time in future

when trying to re-think that great idea you had.

20

Whether you’re a large or small company the process is the

same it has worked for others and it could work for you too.

Take no prisoners, work hard, manage cash flow and you

will hopefully lead your business out of the dark times.

FINAL THOUGHTS

We hope there is something in here that you may not yet

have thought of which could help your company regain

much needed cash.

We always say that if your business is starting to be

problematic then rather than wait, or try to let things sort

themselves out, business owners should do all they can to

seek help.

FREE CONSULTATION

If you would like further advice about anything in this presentation or would

like to take advantage of a FREE consultation to discuss your business; call

today to speak to one of our experienced advisors.

Don’t risk wrongful trading it could lead to personal action being taken

against you, even to the extent of the loss of your home or bankruptcy. Take

the correct steps to move forward with your life. Call us for FREE advice and

in complete confidence on 01472 254914.

We’re confident in the service we offer, our previous clients have marked our

service with 95% “highly satisfied”. We’re confident we will meet all of your

requirements.