How can small businesses and freelancers reduce their outgoings?
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As a business owner during these strange times, it goes without saying that you need to keep an eye on your finances and manage your outgoings effectively if you want to maximize profits.
It’s worth thinking about what purchases you actually NEED to run your business-it it might be worth investing in an accountant for this but you can begin by identifying the areas you can cut back on yourself.
For example, consider things like costs for virtual assistants, marketing and creating your website and other bills-and try and figure out what you could save money on.
If you’re based in an office rather than at home, you may find that you are spending a lot of money on resources and utilities and being wasteful. For instance, lots of us are guilty of leaving our computers switched on overnight and only turning off the monitor. This is a waste of electricity and will boost your bills unnecessarily. Paper and ink are often wasted due to inefficient printing but there are managed print services that can help.
Other freelancers spend money on fancy co-working spaces that they don’t really need too.
Generally speaking, going green usually helps to reduce costs both in the business and at home-because it ensures everything is running more efficiently. Installing LED lights will help you save money as well, although it’s even better if you can make use of natural light by setting up a workspace near windows (this works great for photography). Although these options require some investment at the beginning, they will help you save money in the long run.
Consider what work you’re better of outsourcing and doing yourself. Is it cheaper to outsource something than to skill up and learn it yourself? This is something lots of freelancers struggle with.
Finally, do remember that lots of outgoings can be claimed as expenses on your tax return-you can see my guide to this here.