Globally, many of us are facing a startling cost of living crisis. The COVID pandemic, energy crisis, and major global crises are impacting all walks of life, leaving us to face towering costs. Small businesses are facing this same struggle. Wholesale prices are inflated, energy rates are rising, and, in some cases, supply chain issues are disrupting some SMEs’ ability to do business at all.

In order for businesses to retain security, it’s important to find ways to reduce overheads. When costs are generally rising, it can be difficult to spot areas for improvement. So, we’ve compiled some ways that businesses can cut costs and try to overcome the “cost of doing business" crisis.

Before you delve deep into changing up your business’s spend, it’s important to take some time to analyze your past and existing spend in order to spot areas for improvement. If you’re using tools like Syft, it will be easy to analyze spending patterns and understand where you could improve.

Perhaps you spot that there’s been high spend on office supplies consistently over the past few months. Could your business opt for bulk buying these items instead? This will save you money on recurring costs and delivery whilst maintaining the same level of products that you need.

Of course, when the B2B buying landscape changes as it has in the past 24 months, it can be harder to predict just how much you can save in these areas and what impact it will make. But spotting patterns can be the best way to recognize areas to improve on.

With energy prices reaching record rates in the UK, looking at switching your energy spend should be a top priority in saving money.

In the UK, businesses are facing the brunt of wholesale price shifts. That’s because businesses do not enjoy the regulation and protection seen in the domestic energy market. Whereas we witnessed the introduction of caps for households, no such protection exists in the commercial energy sector. That means that there’s little limit to how much suppliers can raise prices for businesses on flexible rates.

For many businesses, rates have reached 3x what they were this time last year. This is particularly true for businesses that have been placed on out of contract rates. These are businesses that have not secured a new contract since their last expired and are thus more vulnerable to brash changes by their suppliers. This is creating significant cash flow problems for businesses already impacted by a change in operation due to the COVID pandemic.

The best bet for businesses who are now experiencing abnormally high energy bills is to search for (and switch to) a supplier that can offer cheaper rates. In the midst of the energy crisis, this can be a difficult task as there’s less leeway for suppliers to offset the rise in wholesale prices. However, you can help your clients to combat this. By automating the process (through apps like Reducer), securing better rates can be a less time-consuming task. You can also provide the help of industry experts to help you secure appropriate offers for your business clients by using these solutions; that means finding suppliers for high-risk industries and businesses with lower credit scores.

If you instead opt to search the market yourself, have a recent bill and existing contract at hand when contacting each supplier for their offers. Make sure to call a number of suppliers to find the best offer and search up reviews to make sure that you’re not entering into a deal that will only ended in poor customer service. Remember, there’s no cooling off period for businesses, so once you’re locked in, it’s incredibly troublesome to get out.

Energy isn’t the only place to look at switching suppliers. Your business can also find savings in core services such as water, waste, and broadband, and can look even further by switching insurance providers or outsourcing your accountant.

Each market has particular nuances that you’ll need to consider before delving into comparison, but in general, if you have access to a recent bill and your existing contract, then you’ll be able to accurately compare prices across suppliers.

If you’re looking to compare mobile phone suppliers (an area that can find you large savings), then you’ll also want to look at usage, as you may be able to commit to a smaller package than you currently buy. The same goes for broadband, telecoms, and digital solutions like cloud storage.

As mentioned above, you also want to make sure that you read reviews for each supplier you look to switch to. Whilst saving money might be the priority for you, entering into a deal with a poor supplier can be a bigger headache than its worth.

You can also reduce overheads by managing efficiency at work. It’s simple. Less usage equals less spend. This can be especially useful for reducing the impact of crippling energy hikes.

To reduce electricity usage at work, there are some quick changes that you can make. Energy efficient light bulbs can reduce usage and last a lot longer than their LED counterparts, requiring fewer replacements in the future. Turning off electronic equipment when not in use can also help to cut spending. For lights, installing occupancy sensors can help to ensure that they’re only on when in use. Reducing gas spend will take some more effort (and may require some investment) but can yield impactful results.

Improving the insulation of your business or office can help to conserve energy by keeping warm air inside your premises. This can reduce the need for heaters, resulting in lower energy bills.

If your business has a formal dress code, consider adding a warmer option for the winter months to save on heating costs. Alternatively, turning down your thermostat by even one degree can save hundreds over time. If your business has higher gas rates than electricity rates, then you may also want to consider switching to electric heaters or electric ovens (and if your gas rates are cheaper, then vice versa).

Water efficiency habits could also be adopted in the office to reduce bills. Similarly to reducing energy usage, make sure that taps are fully turned off when not in use. You could also install high efficiency water cisterns in toilers to reduce usage when flushing. Monitor for leaks as a leaky tap alone can waste over 5,000 liters of water per year.

Businesses could also save on both their waste bills and resources budget in general by improving their recycling habits and minimizing waste. For example, if your business regularly sends deliveries between offices or franchises, then reuse boxes to save money. Opt for reusable products instead of single use plastics, paper, and cardboard. The money saved on these items will accrue, freeing up more money in the long run.

Elsewhere, you may be able to reduce spend by changing the way that you run communications and deliver information to employees. As a business, ask yourself if you can go paperless. Are printouts necessary? Could you move some traditional processes to the digital space? This could save your business money on paper, ink, shipping, and maintenance. We’ve learned from the pandemic that digital works, so if you’re yet to transition to digital communications having returned to the office, this could provide a practical solution to reducing some costs.

If possible for your business, sticking to some of the remote practices adopted during the COVID pandemic may help to keep costs down.

Remote or hybrid working can save on real estate costs if you downsize or opt for a flexible workspace environment. The boom in conference call technology helps to reduce cost on travelling to in person meetings. Less people in the office? Less milk needed for teas.

When it comes to saving on your overheads, it’s difficult to do it alone. Whether you’re consulting with colleagues, using an industry expert, or taking advantage of new technology, finding savings is easiest when it’s a collaborative process.

So, where can you start? Gain the right knowledge of your financial health with products like Syft so that you know exactly where you can be making changes. Ready to take the step towards smarter spending? Consult with products like Reducer to kickstart with cheaper suppliers.

Eve heads up all things Marketing at Reducer, the UK’s first and only Connected Purchasing platform. From crafting videos to planning strategy, Eve knows Reducer inside and out and can give some pretty decent advice on how to facilitate smarter spending. When she’s not plugged into the cloud accounting matrix, expect Eve to be logging films in her Letterboxd, printmaking, or shaking up a cocktail. Find her on LinkedIn.