Recession is looming, with even bleaker news of an unsteady government. Conservative or Labour, we’re facing unprecedented times regarding our finances heading into the winter months.
Business Savings
With the increase in energy costs, fuel and borrowing it may seem a daunting time to be a business owner.
Below are a few ways in which you can try and reduce your business costs during the cost of living crisis.
Energy
One of the highest costs facing the majority of the Country, energy costs have soared over the last 6 months and will continue to increase throughout 2023.
A few ways in which you can reduce energy costs in your business:
- Heating – Setting a timer for peak times and setting a comfortable temperature for throughout the day
- Appliances – When not in use, turn them off at the socket
- Lighting – Still using halogen bulbs – Time to swap those out for energy efficient LED bulbs
- Go paperless (As best you can), saving printer energy, ink costs and paper!
Your energy supplier may also be able to agree a payment plan which is more easily affordable for your business.
Finances and Budget
Now is the ideal time to be assessing your finances and budget planning. Are you spending more than your turnover? Does your spending exceed your current budget?
When hard times call, it may be easier than you think to cut back spending.
When was the last time you sat down with your Accountant and talked all things finance?
Employment
Let’s be realists, you need your employees. The cost of living crisis is hitting them hard too, therefore they need to know their jobs are stable and their wages are going to be paid.
Instead of making drastic cuts to your team, tone down business paid for events such as free lunches and the Christmas Party, explaining to your team this is a temporary measure to get through the crisis.
Another option which may benefit your business, if you are office based, is remote or sometimes known as ‘hybrid’ working an option for your team?
Since the pandemic, it has proven that some employees have a better work-life balance by having the ability to work remotely, some even promoting they work more efficiently without the daily office chaos.
Remote working doesn’t have to be a 5 days a week, permanent solution. However, it may relieve some of your increased office expenses.
Premises Expenses
Renting your premises? Have you had discussions with your landlord regarding payment and if there is any scope to reduce or stagger payments temporarily during the crisis?
Now may not be the time to redecorate the office or buy the modern new desks you’re striving for. Instead, add this to your budget planning for future spending.
How we can help
If you have any queries on Business Savings, please contact us at mail@seavorchartered.co.uk or 01228 904904.
