9 Overlooked Ways to Bring Down Overheads

Running a small business isn’t cheap! Between rent, payroll, insurance, broadband, energy and all the little costs that crop up along the way, it’s easy to feel like your profits are spiralling down the drain before you’ve even had a chance to enjoy them.

But the good news? There are plenty of overlooked ways to cut costs and keep your business running smoothly. Here are a few areas where you can save more than you think.

1. Shop Around

Energy and broadband bills are a necessary evil, but that doesn’t mean you should just accept whatever price you’re given. Many small business owners stick with the same providers for years, even when prices creep (or shoot) up.

Instead, make a habit of reviewing your energy and broadband contracts at least once a year. Comparison websites, like ours, can help you find better deals. Also, don’t be afraid to haggle - providers often keep retention deals up their sleeves that they won’t offer unless you push.

2. Check for Reliefs

The UK Government offers various schemes to help businesses save money, but many go unused because people don’t know enough about them. For example:

• Small Business Rate Relief: If your property’s rateable value is under £15,000, you could get a discount on your business rates.

• Employment Allowance: You could get up to £5,000 off your National Insurance bill if you have employees.

• R&D Tax Credits: Even the smallest companies can claim these if they do anything considered innovative.

A quick chat with an accountant or a check of the gov.uk site could uncover savings you weren’t aware of.

3. Ditch or Downsize

If the pandemic taught us anything, it’s that many British businesses don’t actually need a physical office to function. If your lease is up for renewal, ask yourself whether you really need all that space. Could you go remote or move into a co-working space instead?

For firms that do need a physical location, sub-letting part of your space could be a great way to recoup some of your rental costs.

4. Cut Down on Software

Subscriptions for business tools and software can quietly drain your budget. Audit all the services you’re paying for and ask yourself: Are we using this? Is there a cheaper alternative?

It’s not uncommon for businesses to find they’re paying for software they barely use. Cutting out a few unnecessary subscriptions could make all the difference.

5. Go Green, Save Green

Sustainability isn’t just good for the planet - it’s good for your bank balance too. Small changes like switching to LED bulbs, using energy-efficient kitchen appliances and making sure lights are switched off when unnecessary can cut your electricity bills.

Investing in insulation or even solar panels could create long-term savings if you own your premises. Plus, many energy providers offer competitively-priced green tariffs.

6. Travel Smartly

If you regularly travel for work, the expenses can add up fast. Instead of booking a train, consider whether a video call would suffice.

Booking in advance, investing in railcards and using hotel rewards can slash travel costs for necessary trips. If you spend a lot of time on the road, consider fuel cards that offer discounts on petrol and diesel.

7. Probe Processing Fees

If you accept card payments, you’re probably paying transaction fees that may seem small initially but tot up over time. Different payment providers charge different rates, so it’s worth shopping around. Some banks and fintech firms offer lower rates for small businesses.

Consider offering discounts for cash or bank transfers to avoid processing fees, as long as this doesn’t affect your tax calculations.

8. Outsource Wisely

Hiring full-time staff for every role can be costly. If you don’t need someone working up to 40 hours per week, outsourcing some tasks - like digital marketing, accounting or cleaning - to freelancers can save you money.

Platforms like Upwork and Fiverr make it easy to find capable and reliable professionals as needed. Plus, you don’t have to worry about paying for additional office space or employee benefits.

9. Suss Your Suppliers

Like with business energy and broadband, when it comes to your supply chain, loyalty isn’t always rewarded. Regularly review the costs of your materials or supplies. You may find better deals elsewhere or be able to negotiate lower prices with your current suppliers.

Bulk buying, switching to more local alternatives or joining a trade association can also help cut costs.

In Summary

Running a small business successfully is about making wise financial decisions. You can reduce overhead by taking the time to review your outgoings and make some smart changes. Even small savings add up over time, so start cutting the fat, and before you know it, you’ll have a much healthier bank balance!

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