How to Save Cash for Your Business

Sarah Parker
Authored by Sarah Parker
Posted: Friday, September 13, 2019 - 05:58

Any business leader with an ounce of experience will know that running a business can be incredibly expensive. While you may be seeing a high number of sales, and huge amounts of money coming into your company, you may be bemused to find that plenty of that cash is finding its way into other coffers on its journey to your company. This article aims to reverse this process, as much as possible – helping you to save cash for your business by tweaking some of your common business processes.

Tax Cuts

One of the largest expenditure figures in the world of tax is, of course, the amount you’re obliged to pay in tax. There’s no avoiding this – it’s part and parcel of working in most developed societies. However, there are ways in which you can reduce the amount you pay in tax, through tax credit schemes designed to support innovative businesses. RD Tax Credits rewards organisations that research, for instance, with tax cuts: something to think on for your business.

Slash Overheads

Your lumbering overheads are often cited as another of your biggest sources of expenditure. The question, for any business manager in the twenty-first century, is a simple one: How much work have you done to slash these costs down? The answer is all too readily, ‘little.’ Overheads can be cut in the modern business era simply by:

• Finding cheaper labour.
• Automating certain jobs in order to lay off workers.
• Haggling and bargaining with suppliers, utility providers and other organisations you pay monthly or yearly.
• Reducing your waste and operating efficiently with your raw materials.
• Being cognizant of your customer service record – better customer service equals less spent on this department.

As your business grows and develops, ensure that you’re constantly revisiting your overheads as a key cornerstone to your cost reduction strategy.

Avoid Damaging PR
One of the more damaging events in the lifespan of a business also happens to be one of the most common: being hit by a PR disaster. For whatever reason, such events have hit many businesses in recent years – even the likes of Apple, Uber, Amazon, and Facebook – all of which took a stock market hit after their PR disaster. In order to save on the costs of such mistakes and errors, ensure that you have a top-quality marketing and PR guru on your team, as well as a sympathetic lawyer, who will represent you when the going gets tough.

Financial Planning

As well as the very practical steps outlined above, there is, of course, a fundamental element to your cash flow planning that cannot go unmentioned in an article such as this: financial planning. Modelling with your digital data can be one of the most rewarding ways to help you cut your business costs – but you’ll need the specialist skills on board to really help that happen. Get yourself a CFO, or else use your existing skills to model your finances, in order to detect just where you’re losing cash in your business operations.

These tips will help you and your business save cash long into the future.