How business leaders avoid burnout
When you’re a small business owner the buck stops with you, which can make it incredibly difficult to sw...Read More
Take shopping for example. It’s winter and you want to keep warm. So you check out your local department stores for the best deal on coats.
At the same time you head online to find out if you could be on a cheaper gas and electricity deal for your home.
Either way, you’re shopping around. It pays to do the same in business.
What’s more, the money you save can be put to better business use, as Cardiff-based entrepreneur Wyn Griffith, points out.
He owns software firm LetMC.com, and Pinnacle letting agents and has this advice: “Shop around. For energy, insurance, telephone, broadband, banking.
“In business you should do the basics first.
“Manage these costs and the money saved can be used for advertising.”
Negotiating can seem daunting. After all, the British are hardly known for their haggling skills, typically finding it all a bit awkward.
But think of negotiating in business as no different to enquiring about a free upgrade when extending your mobile phone contract, for example.
Jo Rogers, owner of Navistar Legal, which offers in-house legal services for small businesses, says: “Remember, every number is negotiable.
“People are not always driven by money when dealing with small businesses. Many will support you because they believe in what you do.
“So just because a supplier can’t negotiate on price, it doesn’t mean they won’t negotiate over payment terms, for example.”
Ensuring you have enough money in your personal bank account to meet your domestic bills is no different to how it should work in business.
But every year, many otherwise healthy businesses fail because they haven’t got enough money coming in to cover that going out.
That’s why it’s important to keep on top of your cashflow, as Rogers of Navistar Legal knows from personal experience.
“I’ve been in a situation before where I’ve been owed £10,000 that hadn’t come through, which left me short of money to pay what I owed. I was technically insolvent.
“As a result, my money-saving tip to any business would be to know what your numbers are – your monthly turnover, expenses, and cash flow to keep you in business.”
John Coles, singer with and manager of Perfect Day wedding band echoes Rogers’ point on the importance of managing cashflow.
He says: “Ensure you receive deposits from clients. This helps me with cashflow for running the band.
“If the PA system breaks for example, we always have a float of cash available for a rainy day. A lot of small businesses go bust because they run out of cash.”
Finally, if your business runs into financial trouble seek help, as you would with your personal finances.
Business Debtline offers free, expert, professional debt advice over the phone to the self-employed and small businesses in England, Wales, Scotland and Northern Ireland.
The service – available online or on 0800 197 6026 Monday to Friday, 9am -5.30pm – gets around 40,000 callers a year on matters ranging from bankruptcy and insolvency to bailiffs and bank accounts.
What do you think?
We want to hear from you! What’s your top money-saving tip for small businesses? Share them with us below.
"Mark was very helpful and had all the answers to the questions I had - would go back to him time and time. Thanks Sir"This review was posted by Wayne Nugent - Mailing Guy on the 20th of January 2017
Switch Business Electricity Contract
"Very good & efficient service - good range of prices offered from variety of suppliers"This review was posted by SALLY DOLMAN on the 20th of January 2017
Cheerful, helpful service.
"Aaron Gallagher was my contact at SwitchMyBusiness.com. Aaron was cheerful and helpful he made switching our electricity supply easy and painless giving an understandable explanation each step of the way. I would quite happily recommend this company and Aaron Gallagher to anyone given the task of arranging a new energy contract."This review was posted by Pam Johnson on the 19th of January 2017
Kyle Wright - Excellent Service
"Dealt with the above on two occasions now and has made the process of switching energy suppliers very easy. Very Polite and helpful person, will defiantly want to deal with again."This review was posted by Skyline32 on the 19th of January 2017
Made this a very simple transaction!
"Aaron was polite, friendly and extremely helpful, making this potential chore a very easy transaction. He explained everything thoroughly and answered all my questions and I feel very confident that the whole transition will go very smoothly and I am aware of what to expect as the process moves forward. Thanks Aaron!"This review was posted by Lesley Clayton on the 18th of January 2017