8 ways to save money in business

Saving money doesn't have to be hard work - here are 8 simple ways to save money in your business. 1. Benchmark your insurance annually Some insurance policies are obligatory while others are optional. It's unfair that loyal customers have the unsavoury privilege of paying more than new customers so, irrespective of the policy type, you should always review and benchmark your insurance renewal. Set a diary date for this, making sure you leave plenty of time to change if necessary. 2. Increase your insurance excess Insurance premiums are based on how likely it is the insurer will have to pay out a claim, the likely cost of claims and the profit or loss they’re likely to make. Insurance should only really be used for catastrophes and making claims for minor losses should be avoided. Repeated small claims are a guaranteed way of increasing premiums and/or having your cover declined. Consider setting the excess higher - this way you’ll be able to lower your premiums, often by quite a margin. 3. Lower your business rates The fact that firms have to pay business rates is a given, but that doesn’t mean that firms can’t lower their bills. If there’s space that’s unused or an external reason such as roadworks affect your trade, an appeal can be made to the Valuation Office Agency for a lowering of business rates. You may also be able to apply for other relief too. Further information can be found here. 4. Sub-let spare space Do you have space in your premises that is underutilised or just not needed? If so, another option to save on outgoings is to consider sub-letting the area. Clearly this isn’t an option for everyone and your landlord and lease will have something to say on the matter, but it’s worth a look and some advice from a property lawyer. 5. Shop around for the right bank account While it’s entirely possible that you’re on a great deal with your bank, it doesn’t hurt to take a look around to see if another institution can improve on the tariff. The British Bankers Association has an account finder tool here which illustrates the offerings, charges and any freebies available. 6. Get a better deal on your energy Diarise when contracts end with your energy suppliers. Remember that there are windows of opportunity to give notice to a supplier and don't assume that being out of contract is a good deal (it’s 15-20% more expensive). You should also regularly benchmark tariffs. 7. Use your phone plan minutes Do you call mobile numbers from a landline? If you do and you don’t have a calling package with inclusive mobile calls, you’re burning unnecessary cash. The solution is simple – use your mobile to make these calls, while being careful not to exceed your inclusive calling plan minutes. If you haven’t done so already, consider changing your landline calling plan to something akin to BT’s Anytime Plan. This allows for free unlimited calls under one hour in duration so long as they are to standard geographic numbers including 01/02/03, 0845 and 0870. Some plans will allow free calls to mobile and international numbers too. 8. Incorporate and save There are benefits to being a sole trader or a partnership. However, you will pay more in tax. But by forming a limited company and transferring your business into the new entity, you’ll be able to extract profits via dividends while also conferring some protection on your personal assets. Here you pay yourself a small amount of salary and a tiny amount of PAYE and national insurance contributions. The rest of the money comes out as dividends which attract no national insurance contributions.