Being your own boss is never easy. I founded G75 Media just weeks after the run on Northern Rock, and a few months before the global financial crisis began to sweep across the planet. Since then, I’ve steered my tiny business through two ages of austerity, Brexit and its myriad consequences, the interminable Scottish independence referendum, a global pandemic which saw us locked in our homes for most of a year, and – most recently – a double-fisted assault on small businesses from the Chancellor of the Exchequer.
Hard times in an age of quarrel
In living memory, it has never been harder to run a small business, or less profitable to try:
- Companies are paying ever increasing amounts of corporation tax, employers national insurance and other mandated levies, in exchange for dwindling amounts of state support.
- Generative AI and search engine algorithm changes have disembowelled the advertising-funded business model of many websites, rendering much of the internet economically unviable.
- Swathes of the HR sector have collapsed under a tsunami of speculative and specious applications.
- Hiring new staff has become a scenario to avoid wherever possible due to soaring taxes, day-one employer commitments and questionable legal rulings. Describing a serial absentee as ‘disorganised’ led to a company last year being found guilty of disability harassment, disability discrimination and unfair constructive dismissal.
As a result, individuals and businesses alike are choosing to spend less money and not grow their businesses. The consequences for entrepreneurs – often at the sharp end of such economic shifts – have been little short of catastrophic.
Nonetheless, many of you reading this will be self-employed or small business owners. Listing the myriad challenges we all face is less productive than considering ways of mitigating and tackling it, which is why the rest of this blog focuses on ways of potentially reducing business expenditure. Some are industry-specific while others are universal, but they might all help to shave small amounts off your annual outgoings – which could make a material difference to your prospects of surviving another year…
Scrutinise your monthly outgoings
This sounds obvious, and yet a lot of entrepreneurs couldn’t tell you how many standing orders come out of their business bank account – if they even have a dedicated business account to differentiate work-related funds from personal ones. If you don’t receive paper copies of bank statements, print out your three most recent ones. Highlight outgoings which are essential to the existence of your business, like Companies House statements or accounting fees.
Slash non-essential purchases
Next, study the non-highlighted bank deductions and consider how many of them really needed to be made. It’s easy to spend money on unnecessary things – stationery which sits in a cupboard, subscriptions you don’t get much benefit from, support contracts you haven’t called upon in the last year. It’s often surprising when you study bank statements how many superfluous items have been paid for, especially if you have a company credit or debit card.
Minimise advertising costs
I spent many years paying money to Google every month for online ads. In the final three years, I didn’t obtain a single paid piece of work from Google Ads enquiries. What I did get was a steady trickle of spam calls and junk emails. Perhaps advertising is essential for your company’s survival, but perhaps it’s not achieving what you hoped it would – or enough to justify its impact on your bottom line. Review the new clients you onboarded last year; did any of them come directly from an advert?
Work from home full-time
It’s tempting to have a dedicated office for your business, which then incurs rent, rates, heating costs and factoring charges. It’s desirable to spend part of each week in a co-working suite, sharing space and ideas with other people. Yet clients won’t pay you more, travelling soon becomes costly, and you probably won’t get any more done. Even working from your local café incurs costs you wouldn’t have at home. You can hire spaces specifically for meetings, but WFH where possible.
Renegotiate contracts
We’re all familiar with the annual increase in car or home insurance premiums – the loyalty penalty existing customers pay to fund new client discounts. There are likely to be many aspects of your business’s service provision where you could obtain a cheaper deal by renegotiating. Industry-agnostic examples include website/email hosting and broadband contracts, business insurance policies, bank account fees, tech support services and media or magazine subscriptions.
Only sub-contract to experts
G75 Media has spent almost two decades supporting companies and charities who wouldn’t be able to generate premium copywriting and marketing copy in-house. We’ve also worked with firms who simply didn’t want to carry out certain tasks internally. When every pound matters, an easy way of reducing business expenditure is to work longer hours and complete more tasks yourself. Yet content production is often worth outsourcing to experts – contact us to find out why…


