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Running a business is capital-intensive, and there is no way to escape that cost. It will take an average of £22,756 to start a business in the UK. And as an entrepreneur, you will benefit from saving money in your day-to-day operations. This can be challenging because everything required to run a business costs money. Therefore, you may have to make some financial sacrifices. If you recently became an entrepreneur, the following money tips will be helpful.
Available statistics indicate that the average business in the UK spends 10% of annual revenue on a mix of traditional and digital marketing activities. Companies focusing solely on digital marketing may exceed this amount. This is because digital marketing, in recent times, has taken on many variations in hopes of promoting business. However, because your focus is on saving money, you may want to review how much you currently spend on your marketing.
It will help if you cut back on your business’s paid ads if they don’t reap desired results. Ideally, it takes six months to start seeing positive outcomes, but if you don’t, please consider looking elsewhere. It would be best to focus on enriching your social media organic content and improving your website’s SEO. These are lower marketing costs favourable for your business.
According to Glassdoor.co.uk, the average cost of recruiting a new employee is £3000. And a company using a recruitment agency will incur a 20% – 30% commission on the new hire’s annual starting salary. Admittedly, this can be a huge financial burden. Fortunately, there is leeway if you want to stick with a recruitment agency and still save money.
Finding a Flat fee recruiter can save you the excesses others charge for. All you need to do is to pay a flat fee for recruitment services and still access all candidates you find ideal. You will not be saddled with paying a commission on every job candidate that comes through the recruitment agency. Indeed, this saves your business money while ensuring you get the best talent. Alternatively, you could look to speaking to a consultant who specializes in recruitment, similar to Alex Gotch, who will be able to advise you on the best way to go about doing this, if you wish to handle recruitment in-house.
You might think outsourcing parts of your business is expensive because the external help must be paid for. However, this is a misconception. On the contrary, business outsourcing lowers costs because it is a one-off payment for work done by specialists. When you compare that to having in-house staff, it is cheaper. In-house staff adds to your overhead costs – i.e., salaries, higher utility bills, purchasing the latest technology, and so on.
In 2018, 62% of UK companies that outsourced parts of their businesses saved up to 25% of annual revenue. Four years later, 70% of businesses from all industries recorded 30% savings in revenue. These statistics show how effective outsourcing has been and continues to be for businesses. Its cost-saving attributes are what continue to drive businesses to practice it.
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