3 tips that will save small business owners money
So many people dream of owning their own business and be their own boss! This is quite an achievement if you manage it, but it certainly is not without stress. With new reports showing that 56% of small business owners have experienced symptoms of poor mental health over the last year, you should look to give yourself a boost and sort some issues out.
A big part of this will involve you making more money, naturally! After all, this is the main objective of any business. You will want to be finding ways to reach more customers, and you will want to find ways to save money in some way.
Thankfully, small business owners can use various tips and tricks to help save money across the business. Some of these will be quite basic in nature. For example, you will want to ensure you are not over-hiring staff, and not over-spending on stock. There will also be more complex tips, and tips that you hadn’t even considered before! For example, we will talk about the benefits of R&D tax relief later on in this article.
To help your business prepare for a more financially stable future, we outline several of the best money-saving tips and tricks in our article below – keep reading to find out more.
See if your business is eligible for R&D tax relief
The UK government provides R&D tax credits as an incentive for businesses undertaking development opportunities that are deemed innovative and aim to improve existing products, services, and processes. Organisations eligible for HMRC R&D tax credits stand to recover up to 33.35% of their initial R&D spend, which can be redeemed as a reduction in business tax or a cash repayment.
It’s usually only granted to companies working on innovative developments in the technology or science sectors; however, even if your small business doesn’t directly contribute to these industries, this doesn’t mean you’re exempt from claiming HMRC R&D tax credits.
While the process might sound incredibly complex, enlisting the services of R&D specialists like Buzzacot can help you determine whether your business activities meet the R&D guidelines and ensure your claim meets all HMRC requirements. Consider visiting their website to learn more about redeeming HMRC R&D tax credits and how their services could help you save money across the business.
Leverage remote work opportunities
In the modern age of technology, business owners can greatly reduce overhead costs by employing remote workers or offering remote working options to existing employees. By doing so, they can cut back on office space rentals, utility bills, and other associated costs of maintaining a physical work location. Remote working has been shown to boost productivity and enhance work-life balance, resulting in a happier, more efficient workforce.
Firstly, assess the nature of your business and the roles of your employees. If their tasks can be completed remotely without impacting their productivity or the quality of their work, then this is an avenue worth exploring. You might need to invest in reliable remote working tools and technologies to make this transition smooth, such as project management software, video conferencing platforms, and secure VPN services. However, the long-term savings could outweigh the initial investment.
Moreover, a remote workforce broadens your talent pool. You’re no longer confined to hiring within your local area, allowing you to find highly-skilled professionals who might be living elsewhere. Always ensure, though, that the remote work model suits both the business and the employee for maximum efficiency and satisfaction.
Opt for energy-efficient alternatives
Another money-saving tactic for small businesses is investing in energy-efficient alternatives. While it may require some initial capital, the return on investment can be substantial in terms of reduced energy bills and potential tax breaks or grants available for eco-friendly practices.
Energy efficiency starts with simple steps like turning off lights and electronic devices when they are not in use. Consider investing in energy-efficient appliances, LED lighting, and programmable thermostats to control heating and cooling costs.
In addition, consider renewable energy sources such as solar panels. Although there’s an upfront cost, the long-term savings on energy bills and the potential to sell excess energy back to the grid can make it worthwhile. Plus, this could enhance your brand’s reputation as being environmentally responsible, which can attract like-minded consumers and businesses.
Remember to regularly review your energy usage and continue to find ways to improve efficiency. It’s also worth looking into any government incentives or grants that could further offset the costs of these improvements.
In conclusion, small business owners don’t need to stress over taxes and expenditures. By integrating the above money-saving tips and techniques, you could reduce costs and make your business more sustainable in the long run. Remember, every little bit counts, and making small changes now could have a significant impact on your business’s financial health in the future.