Effective cost management is one of the most important factors in the survival and success of a small and medium-sized enterprise (SME). To maximize success, small business owners should search for the most cost-effective providers of raw materials, broadband connection and other business inputs. In doing so, many owners will find that there are bargains in all business-related services that they can take advantage of.
How you can save
Below are five ways small businesses can cut costs as they look to grow:
- Free banking services: Check banks and compare fees for banking services. Some of the leading providers including TSB, HSBC and Clydesdale banks are now offering fee-free banking to new SME customers for 18 months minimum. Other banks offer permanent free banking provided a business doesn’t overdraft their account.
- Invest your company’s spare funds: Don’t keep your company’s spare cash in a no-interest account. Look for investment instruments or products that earn at least 1% interest per annum.
- Compare utility provides: Compare telecom, electricity, gas, and broadband services companies before choosing the best provider. You can check price-comparison sites such as Make It Cheaper or SME aggregates such as SmallBusiness.co.uk.
- Payment system management: How much do you spend on payment system or merchant services? Check Cardswitcher.co.uk to see if you can save by dealing directly with Global payments, Worldpay, First Data or other payment systems for SMEs.
- Join buying groups: SME buying groups leverage their joint purchasing power to get better deals on various goods and services. Usually, there is a fee for joining buying groups such as Huddlebuy or Black bear Group but in return, you save much more from the range of discounts you get.