Saving Money in Business UK
The British Chamber of Commerce published research recently that showed firms are under extreme cost pressure. As a result, three-quarters of firms are increasing prices to cover costs. However, there are ways for businesses to cut costs and avoid unnecessary expenditure. One way to do this is by performing a comprehensive spend analysis. This will help them identify wasteful expenditure and forecast future costs.
Investing in a business fixed term bond
If you have your own business and are looking to save money, you might consider investing in a business fixed-term bond. These bonds generally offer higher interest rates than a business savings account but you cannot withdraw the money during the fixed-term period. Another disadvantage of these bonds is that you have to pay an initial amount, which depends on the type of account you choose.
Online business savings accounts
A business savings account is an account that a business owner has that earns interest. There are several options available. You can look for one that pays a high annual percentage yield (APY) and offers no maintenance fees. It is best to avoid monthly fees if possible. The monthly fees are not very expensive but should be avoided.
The First Internet Bank offers an online business savings account that earns more than average interest. Its variable APY is 0.40% on balances under $10 million, and 0.25% on balances over that amount. This bank also has an app that allows you to track your finances with ease.
Switching to an alternative financial service provider
Switching to an alternative financial service provider in the UK is a great option for small and medium-sized businesses (SMEs) that are facing problems with traditional lenders. However, SMEs should be aware of the potential pitfalls of switching to such providers. The new government initiative is aimed at ensuring that the smaller business finance market in the UK is more competitive and offers better choice to smaller firms.
Cost-cutting ideas
There are many ways to reduce costs for a business. By looking for hidden costs, you can save money and improve your business. Keeping your business as cost-effective as possible will help you survive the uncertain economic times. By following some simple cost-cutting ideas, you can avoid wasting money on unnecessary expenses.
Start by evaluating your day-to-day expenses. Consider switching suppliers, reducing subscriptions to software or reviewing contracts.
Energy audits
A business energy audit is an excellent way to save money on energy bills and move toward a greener future. Depending on your needs, you can conduct an audit that is systematic or more detailed. During the audit, you can identify areas of improvement that can be addressed in the future. While some of these opportunities may require long-term fixes, others can be addressed with minor adjustments.
An energy audit will identify opportunities for energy savings, such as switching to a more energy-efficient building or switching energy providers. If you’re not sure how to do this, you can consult with an energy expert. In general, the cost of conducting an audit is around 1% of your annual energy bill. Additionally, some energy suppliers offer energy audits for free.
Budgeting for a recession
If you’re a small business owner in the UK, the economic recession has left you in a difficult position. You can’t control your overheads, and inflation has sent utility and rent bills skyrocketing. With the government refusing to help, you need to take tactical steps to protect your business and keep your overheads down. The Office of National Statistics (ONS) recently published data showing that the UK economy will not return to its pre-virus level until the middle of 2022.
The recession is a scary time for business owners, but it can also create opportunities. A recession is when the economy contracts and people stop spending, resulting in less business all around. At the same time, costs are rising, due to higher interest rates and inflation.
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