The secret to cutting costs in your business

01st December 2021

Recently, we wanted to recruit a new team member.

We approached two recruitment firms. The one which was our first choice charged double the price of the other firm. The difference amounted to thousands of pounds.

So what would you have done?

Would you have swallowed the higher cost, to find the right person...

...Or reluctantly gone with the cheaper provider?

It’s a bit of a trick question, because we actually went a 3rd way. We asked the more expensive firm whether they could match the lower fee - and to our delight, they said “yes”!

There’s a lesson here, if you want to control your company’s outgoings.

Cost-control isn’t a one-time event - something you do once a year, when you get your accountant to look through your accounts and point out your largest expenses.

It’s about developing a company culture, where your people constantly challenge your spending.

No quote should be approved without automatically asking two questions...

  • “Is this the best price we can get?”
  • “Is this value for money?”

You should always shop around for a good deal.

And it’s perfectly reasonable to ask your preferred suppliers whether they can do better on price - just like we did with our search firm.

This might make you squirm... It feels cheeky and us Brits don’t like imposing.

But the result is that you regularly get stuck paying more than you need to, cutting into your profit.

In my experience, suppliers will often adjust their pricing in order to secure your business - if you ask. But you need to make it a habit - it has to become part of your company’s way of working.

And the more you practice asking, the easier it will become - and the more you’ll do it.

You can challenge costs even with suppliers you’ve been using for a long time. Chances are, you’ve been paying their invoices for years out of sheer habit, without ever checking that you’re getting a good price.

Going back to them will likely save you thousands.

Cheapest is rarely best, and I’m not suggesting you should always go for the lowest price.

The “best deal” is one where you get the best value for your money. It’s about spending your money sensibly so you get a lot in return.

Many products and services are worth paying a bit more for because they’re better quality, you get more bang for your buck, or you save time or hassle.

For example, I’m willing to pay just a bit more for our printer because they’re so easy to deal with. That’s an efficiency for us.

I also recognise that our Outsourced Finance Department is not always the cheapest option if you’re looking for help with your financial management.

But you’ll get more value with us than with any external accountant or in-house Finance Director, including...

...Tailored financial guidance - we work with you personally to make sure you understand your business’s financial position and can make the best decisions for your future...

...Installing dozens of financial systems in your business, helping your business run much more smoothly immediately...

...Budgeting and planning ahead, so you can make sensible financial decisions - with confidence...

...Access to an entire team of financial professionals with different experience and skills all working on your behalf, whether it’s basic bookkeeping or carrying out a much more complex task like selling your business or securing a large loan...

...Managing many of your day-to-day financial transactions, so your cash is handled professionally and you no longer have to worry about nasty financial surprises.

That’s world-class financial management. And our clients believe that it’s worth every penny, because it helps them maximize their profitability and grow much faster.

One of the little ways in which we’re different - and provide enormous value?

We help our clients identify where they may be spending too much and challenge them to achieve a better price.

So not only do we help you control your costs on an ongoing basis, we also help you become used to questioning your expenses...

...Instilling the mindset necessary to keep outgoings as low as possible.

To find out more about how we can help you too, email or call us on 01279 647 447. I’ll get right back to you.

Warmly,

Garry


Outsource my finances | I need an FD | I'm looking for a Finance Director | My business is struggling | I want better financial management | I need better accounts software | I need a better accountant | My financial systems are a mess | my business is failing | Interim FD | I need help with business development | I want help with my accounts | I want to replace my bookkeeper | I'm looking for an outsourced finance department | Accountants in Essex | Stansted Accountant | Finance function outsourcing |

Contact Enquiry Form