NEW FIGURES released by the ONS have revealed that the UK fell into a recession at the end of last year as GDP declined by a bigger-than-expected 0.3% in the last quarter.
The shrink in GDP marks the second quarterly contraction in a row and meets the definition of a “technical recession”.
In response to this, business comparison experts at Bionic have shared their advice on how businesses can cut costs at a time when the economy is in such a turbulent state.
Les Roberts, Content Manager at Bionic, said:
“The common impacts of a recession on your business include reduced cash flow, decreased demands for goods, reduced profits and subsequently changes to ways of doing business.
“In the event of an economic downturn, businesses must do all they can to reduce costs in order to increase the money they have available within the company. This can directly lead to increased profits and help grow your business. The more money you save, the more you have to spend on better products, marketing, partnerships and more.
“There are a few ways to go about reducing business costs. The most common ones include:
- Evaluate all existing costs – “Make sure you have a budget you strictly keep to. By sticking to a certain amount of spending, you can build up an idea of your monthly costs and plan for the future as a result. If you have the right budget in place, you should also be able to figure out areas you can cut down on your spending.”
- Reduce supply expenses – “Make a list of products you buy on a regular basis or stock you order weekly, for example, office supplies. See if there’s anywhere you can get these items cheaper.”
- Opt for energy efficiency – “Being smart with your energy can help with reducing business costs. Make sure you’re getting the most out of your energy contract for starters. Although the UK is in the throes of an energy crisis, you can still save money by switching lights and machinery off when you don’t need them. To go further, you can opt to only use energy in off-peak times.”
- Cut production costs – “Try eliminating stages of production that are time-consuming and unneeded. Again, see if you can justify the number of staff you employ. See if your premises are appropriate for the size of your business. If you have too much space, then maybe you could downsize.”
- Consider going paperless – “Going paperless not only saves you money, but it could also limit stress and make running your business easier. For example, virtual meetings with suppliers can help minimize travel expenses and virtual offices can eliminate the need for physical shop space. Also, by sharing virtual documents, you can save on things like ink, paper and printing costs.”
- Apply for cheaper business insurance – “It’s important to do a lot of research on insurance companies in order to ensure that your business gets the best deal. However, while price does play a part in determining your insurer and insurance policy – the most important factor to consider is getting the right cover for your business over price to ensure that you’re covered for everything you might need.”
