Times are tough and with costs constantly rising, you certainly wouldn’t be alone in searching for ways to cut down your outgoings. If you work in a trade, everything from licencing and legal fees to construction materials and tool costs can add up and leave you out of pocket if not managed properly.
While it can be tempting to reach for cheaper materials or to drop outgoing costs like insurance policies or marketing to save the pennies, there are better ways to cut costs without putting your business at risk or at a disadvantage. To help you put together a plan, we’ve gathered some of the best ways to cut costs in your business in the right way.
Shop Around For Materials But Don’t Compromise Quality
Finding materials at a cost you can afford is important, but taking some time to find the right materials at the right price could save you a lot of not only money but trouble in the long run. While it can be tempting to reach for the cheapest available supplier when money is tight, using sub-par or cheaper materials could actually end up costing you more if they don’t perform in the right way. Poor-quality wood, for example, could fail to hold up as effectively and cause damage or wear to your projects sooner than a higher-quality alternative, ultimately costing you more through claims made by your clients.
By shopping around, you can find the best quality materials you need often at lower costs than the first place you look. It may also be worth looking into deals on bulk-buying materials for future and upcoming jobs, though it’s important to make sure you have adequate storage to prevent issues with waste or corrosion. Many wholesalers will offer deep discounts for bulk purchasing of not just materials, but tools too – it’s worth shopping around to see what you can find and how much you could save.
Pick The Right Insurance
Some trades come with a legal obligation of a public liability insurance policy, but the truth is any business in any industry can and should benefit from the right insurance policy. While it is an outgoing cost, whether monthly or annually, it’s a cost that your business can’t afford to go without and that could actually save you money in the long run. Employer’s Liability Insurance, for example, is a legal requirement and is necessary to protect you and your employees financially in the case that they are injured or fall ill as a result of your business activity. You cannot have employees if you do not have this insurance. Shopping around with a trusted broker such as our team here at Ashburnham Insurance ensures that you can get the best rates for the right policy for your business.
Similarly, Public Liability Insurance offers protection in cases where members of the public or your clients are injured or fall ill as a result of your business activity. When claims are made, insurance can provide you with financial protection for compensation costs, legal fees and more. Additional products including professional indemnity insurance can also help protect you against financial losses as a result of reputation damage. If you aren’t sure what works best for your business, we can help you find the best policies at the best rates. Simply get in touch with our team to find out more.
Improve Your Supply Management
Waste is one of the biggest culprits for loss of funds and reducing this could help you save money and make better use of the supplies you purchase. Improving efficiency on-site and making use of what you have in the best possible way can help to speed up each job without compromising on quality – do you find that staff are standing around with nothing to do? Could you reduce the number of staff on the site at any one time and redirect them to another job or task? Your employees are resources too and can be utilised in a way that not only improves your efficiency but provides them with rewarding jobs each day.
As far as supplies go, keeping track of what’s being used and what is left at the end of each job can help you work out whether you can reduce what’s being used or whether leftover materials can be used on other jobs without compromising quality for the next client. Offcuts can be used for smaller jobs or cut down into dowels and other shapes as needed.
When it comes to running your trade business, there are always going to be costs involved, but by improving efficiency, reducing waste, improving your suppliers and making sure you’re insured, you can better prepare for the coming months. For more information about the insurance products we have on offer and how we can help you find the best rates, get in touch with Ashburnham Insurance for free on 0800 1696137.