Member Article

SME money saving tips from Deal Jungle

Focus On Purchasing

Many businesses do not place the same emphasis on buying as they do on selling and over time continue to waste money by making inefficient deals.

Perhaps the most obvious solution is to negotiate new contracts individually. However, this approach is time-consuming and the individual savings may not be enough to justify the time commitment negotiating the deals. The answer is to treat buying in the same way as any other non-core element of the business and that can mean outsourcing. For smaller businesses, that can mean pooling buying power with other small businesses via a crowd purchasing platform which can negotiate better payment terms, delivery frequencies and discounts. In this way smaller companies effectively join up to create a body large enough to take advantage of some serious discounts. And the hard work is also done for them, the platform negotiates the deals, all the members have to do is take advantage of the reduced rates.

Stay On Top Of Paperwork

Many businesses have excellent products and services with growing numbers of satisfied customers, yet fail because they have not controlled their finances, so make sure you stay on top of things.

Keen an eye on your bookkeeping right from the beginning and don’t be tempted to put off your paperwork, otherwise you risk forgetting crucial costs or even worse failing to invoice a customer. Track your VAT and make accurate returns and do your banking online, it saves time and money.

Take control of your margins and sales revenue with documented quotes, orders and invoices. Doing the work or supplying the product is a waste of time if you are not making a decent margin or getting paid correctly.

Cash is king when you start a business, so plan ahead, anticipate key costs and save time by scheduling recurring invoices and purchases. Make sure you pay yourself and your staff on time, keep accurate records and cut down on hassle and worry by keeping up to date with tax and national insurance payments.

If you trade in multiple currencies keep track of foreign currency exchange rate gains and losses and ensure that your margins hold up for foreign sales as currency fluctuations can eat into your profit.

This was posted in Bdaily's Members' News section by Tom Michaels .