Small businesses have big appetites for cash.
By the time many entrepreneurs blink, their small business has generated yet another expensive bill. Or acquired an unforeseen overhead.
So it’s important to take every opportunity to keep your business streamlined. You want to be sure that cash is converted to profit rather than debt.
These money-saving hacks for your small business should help you avoid some potential pitfalls.
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There’s a real sense of satisfaction in cutting the red ribbon when you open your impressive new office.
But some businesses are ditching physical premises entirely in favor of remote working.
This saves on rent and electricity overheads as well as the cost of expensive equipment like communal printers.
And recent research suggests remote workers could be happier and more productive. That’s the perfect double-whammy for any new boss.
So if the public-facing aspect of your operation is limited, you might be able to work more effectively with a remote team.
Going remote can save you the cash you need to protect profitability while you carve yourself a niche in your sector.
According to reports, UK small businesses waste 120 days per annum on administrative tasks.
That’s time that can be better spent focusing on productivity and profitability.
Some of these time-consuming tasks are important, like arranging staff pay and ensuring tax compliance.
But HR software solutions make outsourced payroll cheaper and more convenient for many companies.
Choosing to use an external service means you’re confident that staff are paid promptly. Additionally, you’ll be completely tax compliant, without having to hire expensive HR staff or sacrifice your own time.
This is one time-saving tip small business owners should take note of as early as possible.
Reclaiming R and D costs from your corporate tax bill can save you significant amounts of cash.
Investing in the equipment and materials necessary to create and test prototypes is extremely expensive. On the other hand, current legislation allows firms to claim a £130 deduction from taxable profits for every £100 of qualifying expenditure in their profit and loss accounts.
And if your firm doesn’t make a profit during the first few years of operation, you can use these deductions to increase a loss to carry forward and set against future profits.
Firms in various sectors can be eligible to reclaim R and D costs from their tax bills. So it’s worth seeking advice on this subject the next time you complete your tax forms.
Being aware of the ways legislation can actually aid small businesses is always a wise move.
If you want your startup to enjoy sustainable success it’s crucial to think about competitive strategies.
For example, can your business offer goods or services significantly cheaper than your competitors do? If you can do so on on a long-term basis you’ll certainly stand out from the crowd.
If you’re offering products or services that are unique, or delivering them in a novel way that’s useful, customers are more likely to remember you.
And if you specialize in a particular niche where you can offer peerless experience and expertise, you’ll practically eliminate the competition.
These approaches are basic. However, you can also differentiate your business through an imaginative approach to your customers’ experience. Do this by communicating with consumers persuasively both online and off.
What’s more, these money-saving hacks for your small business should help you stay afloat while your competitors are sinking.
What tips would you give a new entrepreneur? Share your advice in the comments section.