By Michael O’Grady, BCR Associates
Looking to make your business more valuable? Simply follow these top tips for cutting costs and reducing risks:
1. Review essential running costs
As the saying goes, ‘if you don’t know the cost you can’t save it’. Don’t bury your head in the sand — this is YOUR money. Reducing spend will result in pure profit.
2. Plan ahead
Individual areas of financial risk in businesses can add up to a long term problem that will stunt business growth therefore it is important to research and plan for this.
3. Find a great accountant
More and more businesses are now looking for their accountant to be a “trusted advisor” and to become part of their “team”. A good accountant will look to assist your business to review your costs and look to maximise your profit in the most tax efficient way.
4. Assess good risk V bad risk
Positive risk allows businesses to leap beyond their confines define new markets and capitalize on their skills. The flip side of the coin is the risks of making those leaps without a well thought through strategic safety net.
5. Strategy to mitigate risk
Solid business planning is the only way to forecast what could be a risk to your business. Always try to remain one step ahead with best and worst case scenarios in mind.
6. Understand threats
Examine the things that may stop your business from functioning and put safety nets in place. From suppliers going bust to IT failures, a strong contingency plan cam save thousands of pounds.
7. Don’t ignore HR and Health & Safety
With soaring numbers of tribunals and prosecutions for health and safety offences costing UK businesses million, make sure that you are fully compliant and protected.
8. Be green
Begin with the obvious; turn the lights off when you leave. Switch monitors off, turn the thermostat down by 1°C Collectively small steps can save thousands.
9. Take advice
for business advice, free advice provided by a business support organisation or consulting another experienced business person and, used correctly, it can have a significant and positive effect on business performance.
10. Question yourself
Before agreeing to any spend for your business ask the question, ‘”Do we really need this?”.