How to cut costs - XLN Telecom

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2 TOP TIP Cutting the fat When considering cost efficiencies, there are some drags on the business budget that every owner turns to. With a small business, employee salaries and property rental rates are often the largest drains on the budget, and while it's fine to identify the largest outgoings and tackle those first, be careful while doing so. Never cut money that could have a positive effect on your business when there could be more wasteful outgoings elsewhere to be dealt with. To this end, we recommend taking the time to identify every wasteful penny before even considering cutting down on cash flow that has the potential to help your business. As Miranda Ballard, co-founder of Muddy Boots, says; "Never spend your precious money on anything that won't make a return." Before you sign up to any service that the salesperson claims will benefit your SME, make sure it's worth it. Ask for data to back up the sales pitch. "We find it frankly rude now when people try and sell us something and they can’t tell us how many hits their website has, what the conversion to sales are, how many visitors to the event, spend per visitor, average spend," Miranda says. "Never be afraid to ask them." SME tip – Using your network As an SME, it's likely that you'll need to make use of professional services outside of your own expertise from time to time, or even on a regular basis. While many of us head straight to Google, the Yellow Pages or the village newsletter when skillseeking, Jayne Hobin-Wright of Slim'n'Saucy suggests using your personal network first as a way of potentially saving some serious cash. "You'll know a lot of people with a lot of skills between them," she advises. "Ask them to help out for free while you're starting out and pay them back for their time once you're up and running." “I'm very big on recycling. If I make a dress for somebody and there's fabric left over, I make it into a sample." Christina Sesay, Owner, Sesay Bridal Wear
3 TOP TIP Price comparison shopping When you're looking to make a big purchase for your home, do you take the first offer made to you? Of course not - you shop around. You do some comparison shopping. Why should it be any different for your business? Consider every business you pay - your accountants, finance providers, suppliers etc - and leave no stone unturned in your mission to secure a better deal. A good customer tip here is to shop smart. Edward North, XLN claims that far too many companies rely on customer lethargy, preferring to leave them on the same tariff until prompted. "There are too many businesses that are reliant on you taking the same old tariff year and year. That's not in your interest," he says. "Never spend your precious money on anything that won't make a return." Foods Miranda Ballard, Co-Founder, Muddy Boots Real 4 TOP TIP Technological trickery A computer and an internet connection is an essential part of day-to-day running for many small businesses. As you're already paying for them, why not make an effort to take back some of that cost by using them to save money? The UK has the highest digital economy in the G20, Edward North of XLN states, and you're going to be held back if you're not using it to make cost efficiencies. "We have somewhere in the region of 20 per cent of our customers going online instead of receiving paper bills at the moment," he says, by way of an example of how the internet can be used to make savings. “If you're not online, you're going to be held back” Edward North, Head of Product Management, XLN Business Services
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How to cut costs - XLN Telecom

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