The cost of everything is going up and it isn’t an easy time to run a Business.
The National Minumum Wage increased in April 2025 along with an increase in the Employer National Insurance Rate.
Fuel and Energy costs are increasing, with food and Transport costs rising as a result.
Suppliers are passing on the cost to Businesses, hitting your Bottom Line. What can you do to cut your costs and increase your Profit? Or just survive?
Here we explore what Businesses can do…
Invest in Software
Many Businesses don’t have any visibility on their Finances and still drop off manual paper records to their Accountant each year.
Doing this means that you can’t be proactive in running your Business or have the data to hand to run your Business efficiently or profitably.
Do you know how much you spend each month on Marketing or Stationery Costs? Do you know your breakeven point?
Do you rely on the balance in your Bank Account to know if you can survive another month or two?
Without having software such as Xero in place, you have no visibility on how efficient your Business is, where you can save money or how you can be more profitable.
Undertaking your own Bookkeeping in Xero will also reduce your Accountancy fees (yes, we are doing ourselves out of a job….) – A win, win!
Increase Prices
Is there scope to increase your pricing? Have you scoped out your Competitiors? Do you increase your pricing Annually by the RPI, CPI or any other percentage?
You should have a clear pricing strategy to ensure that you increase your Pricing annually to ensure your profit isn’t swallowed up year on year by an increase in Business Costs.
Review Office Space or Property Costs
If you have an Office Space, do you need it? Do all of your Staff work in the Office or do some work remotely or Hybrid?
It may be possible to reduce your Office Space and associated costs or implement a Hot Desk system for Hybrid Staff or
If you have excess Office Space, can you sublet any (subject to your lease or rental agreement)?
Can you use a Co Working or Shared Office Space?
Reduce Supplier Costs
Can you reduce your Supplier costs by shopping around?
Do you know what you spend on each Supplier or do you generally accept their Annual price increases?
Reviewing your spend on particular Business costs is essential each year to ensure that you are getting the best deal.
Move to the Cloud and Open Source Software
If you have older Server based systems and Software, it may be time to move to the Cloud to reduce server and Hardware costs and Maintenance costs.
Using Open Source Software can also reduce license fees and other Software costs.
Don’t forget to spend time on Marketing & Training
Investing time in Marketing is essential to growing your Business and becoming more Profitable.
You can learn about Marketing strategies and processes such as SEO, PPC and more by tapping into free local support from your Local University, Growth Hub or Council.
Outsource
If you are over Capacity, rather than recruit a new team member, can you outsource to reduce costs and tap into Specialist Expertise?
By outsourcing, you can usually “buy” in hours from a Virtual Assistant, Marketing Consultant or Bookkeeper to assist you when needed.
Pay off Loans, Credit Cards or Debt
If you have funds in your Bank Account sat idle and outstanding Loans, Credit Cards or other Debt; Look to pay them off early to reduce the amount of Interest being paid.
Put money into High Interest Accounts
If you have Cash in the Bank, is it earning money for you? It is likely on a low Interest rate (if at all) and you may be able to open a High Interest Savings or Deposit Account to earn interest on funds in your Business Bank Account.
Summary
There are a lot of things that you can do to cut costs or be more efficient in your Business. For more advice or support, get in touch with our Derby or Ripley Accountant team to see how they can help your Business. Call 01332 981920 or 01773 424009.
