Business Planning: How Can My Company Save Money In 2021?

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It isn’t easy running a business on a tight budget. 

Between employee salaries, massive outgoings and unexpected costs cropping up throughout the year it’s almost impossible to keep your operations in the black. Things only become more difficult when you’re actively trying to cut back and save. 

Businesses of all shapes and sizes are struggling right now. There’s no denying 2020 was a difficult year full of unique challenges, and so far 2021 has thrown up it’s own share of issues. However, there is a light at the end of the tunnel and wealth of creative ways to save money to draw from (companies have been very creative throughout the pandemic). 

Looking to adapt your business plan mid-year? Here is how your company can save money in 2021. 

Reduce travel costs

Everyone loves a business trip. A chance to get out of the office, make valuable contacts and, hopefully, explore and enjoy your new surroundings. 

The big problem is, travel is one of the most costly expenses for a business year on year. On top of that, it’s not exactly easy in a pandemic world. 

As great as it feels to jet around the world meeting clients and partners for lunches, it might be time to cut back and turn those travel expenses into vital savings. 

There are a number of ways you can make essential business travel cheaper. If you need to leave the country for an international conference make sure to use tools such as Sky Scanner to pick out the best value flights. It might take you a bit longer than a traditional booking, but that house spent searching could half the cost of your time in the air.

Flying isn’t always the best option either. Rail remains a more economic mode of transport in many countries and a great opportunity to get some extra work done on the way. If your company has people frequently travelling for work it may be worth investing in your national equivalent of a rail pass — often affording you discounted tickets and unique, business-wide benefits. 

But what if travel is your business? The transport industry has faced a number of obstacles throughout the year, but there are fortunately many money-saving avenues for you to explore, from pre-planning driver routes to economise fuel usage to leasing vehicles for reduced maintenance costs. 

Alternatively, you could just not travel at all! Remote working as a result of the coronavirus pandemic has introduced the uninitiated to the wonders of video chat through the use of tools such as Zoom and Google Hangouts. Not every meeting needs to be dinner and drinks in the hotel bar — sometimes it can be an hour’s chat online. 

Re-think your working space

The office is one of the biggest catch 22s for a business. It’s where your team collaborates, bonds and feels at its most productive – but it costs a hell of a lot to keep running. 

Rents for office spaces are becoming more astronomically year on year (just look at these London prices) — costing businesses thousands that could be put back into the business or saved for much-needed post-COVID bonding sessions. 

You may love your open-plan space and trendy downstairs cafe, but are they really essential to a business that needs to be pitching the pennies? 

If only for a year to build up some savings, consider switching to an alternative working space. Remote working is something that we’re all far too familiar with, but when managed efficiently and sensitively, it can be a hugely successful method for many businesses – especially those with a digital focus. 

If you must have an office though, it may be worth re-thinking the space and how you could better utilise it. A rotating remote working system would allow you to downsize to a smaller, more affordable office. That way you’re saving not just on rent, but desks, tech equipment and even utility bills. Hot Desking scenarios aren’t for everyone, but they’re an undeniably cheaper option. 

Who you work with is just as important to your budget. Attempting to save shouldn’t mean you go on a firing spree, but in the future, consider working with more freelancers. While they charge more per hour you don’t have to tie them down to a permanent contract, meaning you can bring them in for particular projects and cut them out of your budget when work is slow. 

Be careful though – it’s important you don’t harm morale in the workspace. Offices, warehouses and sites need to be comfortable, collaborative and welcoming – or else you’re sacrificing a happy and productive workforce for meagre savings. 

Embrace the power of productivity tools

Throughout the pandemic, businesses have leaned on digital tools to do much of the heavy lifting for them. These tools aren’t just necessary investments for remote work practices though, but excellent ways to streamline costs. 

Once you start using these digital tools you’ll wonder how you ever operated (and made a profit) without them. Project management tools make sure everyone is one the same page, ensuring everyone’s talents are best utilized. Digital communication platforms make conversation something that happens alongside productive work – cutting out the need to travel three floors for one conversation.

One of the biggest money drains for businesses today is advertising and marketing. Paid advertising can take a huge chunk out of your budget (even if you’re doing it right). Rather than throwing money at advertising why not invest your time into a free option — social media. Social platforms such as Facebook, Instagram and Pinterest do have paid services, but their free options are a great way to get a business off the ground and engage with a social audience. 

Of course, there are a number of free tools you can use on top of social platforms. Many of the best digital tools run free trials for a month or offer a free service with fewer features, such as Mailchimp. If you’re not ready to put money down you can still get a more than serviceable use out of these tools. 

Businesses could also make use of utility bill management services to properly audit and manage their monthly expenses for utilities. Doing so would ensure that there would be no missed payments, and therefore minimizes any penalty fees associated with late payments.

So there you have it, some simple tricks every business across most industries can try out to save some money in 2021. This time of year is a great time to look back at how the business has progressed and regressed so far, and spot possibilities for change. Don’t miss the opportunity.