How to save money as a small business

Why should a small business save money?

Finding the money to get off the ground or stand out against your competitors can be difficult. You may have big ideas for the future, or you might need to make some repairs.

Here are a few reasons you might need to save money as a business:

  • Unexpected accidents. You may run a tight ship, but sometimes issues can spring up out of nowhere. You may need to repair a leaky pipe or replace the flooring. Having savings set aside could help prepare for the unexpected.
  • Big plans ahead. Want to push things further? Savings could help you fund an expansion. For example, you may want to hire more staff, set up a new location, or launch an exciting new product.
  • Investing for the future. That could mean investing in new technology, or even hiring an advisor. Having savings can help fund the investments that make the wheels run a little smoother.As a start-up, finding the money to get off the ground or stand out against your competitors can be difficult. You may have big ideas for the future, or you might need to make some repairs.

A step-by-step guide to saving money as a business

So, you’re set on boosting your savings. Perhaps you even have a business savings account* to help. But how do you make the changes you need to create that extra bit of breathing space?

Let’s explore exactly how to save money in your business with some practical tips.

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Regularly review suppliers and subscriptions

We’re all guilty of signing up to things that we don’t use, or have just forgotten about.

If you’re looking at how to save money in business, it’s important to know if you’re getting value for your money. So, you may want to think about renegotiating or cancelling redundant contracts.

Think about bargaining for a better energy deal. Or cancel that software subscription your employees never use.

Optimise and streamline your operations

Selling equipment you no longer need could help give you that savings boost you’ve been looking for.

Hybrid and remote working is on the rise, with 49% of people now working from home at least once a week. Business owners could be stuck with desks, chairs and IT equipment they no longer use. Selling this unwanted equipment could help you free up some extra funds. 

Recruit effectively

Recruitment costs can add up. Especially if you’re relying on job sites and recruitment agencies. Choosing the right staff and making an effort to retain them can help you save in the long run.

You might want to think about investing in staff incentives and rewards. Although these cost money, they won’t be as expensive as regularly replacing employees. 

If you’re struggling to afford full-time staff, freelancers could also be a good option. They can provide you with flexibility, especially if you need support at short notice.

Make climate friendly decisions

Making climate-friendly changes  can help your profits and the planet. Cutting down on paper and buying second-hand are great sustainable saving methods.

Turning off lights and appliances can also help you reduce your bills – and your carbon footprint. Although it costs to install renewable resources, they can help bring down your energy bills in the long run.

Buy essential items in bulk

When looking at how to save money in a small business, bulk buying can help you cut back. Buying in bulk can include wholesale discounts. Plus, you could save money on repeat shipping costs.

Some essentials you could bulk buy include:

  • stationery
  • kitchen essentials
  • bathroom essentials
  • cleaning supplies

Find savings methods that work for your business

Starting a new business is exciting. And mapping out which saving methods will work for you is important before you jump in.

Our guidance above is there to give you a few ideas. Remember to do your research and budget accordingly.

Saving money can help you build up a safety net that you can rely on – for both good times and bad. A business savings account is a helpful place to store what you’ve saved, so it’s ready whenever you need it.

Related Content

Want to learn more about business savings? Check out our helpful guides for small businesses:

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* Specific account eligibility criteria and conditions apply

Contact us

Want more support with business savings accounts?

Chat to us online using our digital assistant Cora available 24/7.

For basic banking support, you can contact us on 0345 711 4477 – call centres are open 24/7.

If you have lending and other specialist business banking enquiries, our team is available Monday to Friday, 9am to 5pm.

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