How your business can save money during the cost of living crisis

With talks of a looming recession threatening to compound an already severe cost of living and energy crisis in the UK, it’s no wonder that commercial property owners and business owners are looking for ways to save money.

Small businesses especially face considerable pressures to keep up with escalating business expenses, such as electricity, rent, and staff wages in an uncertain economy.

With no magic fix to these financial issues in sight, many commercial property owners are using smart saving and budgeting strategies to keep business expenses down and their heads above water.

From cutting down on energy bills by investing in sustainable upgrades to commercial properties to shopping from local suppliers to minimise shipping and delivery costs, there are many ways you can save money as a commercial landlord or business owner.

Check out some of the best ways to save money during this time below!

12 ways commercial property owners & renters can save money

Cutting through all this doom and gloom, our experts decided to compile the most effective and accessible ways for commercial landlords and business owners to save money. Keep reading to find some great ways to keep your business or landlord costs down.

#1 Evaluate current expenses

Your first port of call is to assess your current business expenses. We recommend doing this by creating a spreadsheet that lists all expenses on a daily, weekly, and monthly basis. From there, see what costs you can get rid of, temporarily pause, or find better deals for.

#2 Improve energy efficiency

Whether you’re a commercial landlord or business owner, finding ways to increase your property’s energy efficiency can significantly help cut down on energy bills. For example, upfront investments, like triple-glazed windows or solar panels, can pay off hugely long-term.

#3 Take energy-saving measures

Aside from upgrading the energy efficiency of your commercial property, it’s also vital to find ways of reducing energy usage. Things like turning off lights when not in use, installing smart meters, and asking staff to wear more layers can go a long way in reducing your energy bills.

#4 Don’t let minor issues snowball

No business owner wants to experience forced downtime during a cost of living crisis, and no commercial landlord wants to pay for expensive repairs. That’s why renters and landlords must highlight and fix minor property maintenance issues, like a small leak, before they worsen.

#5 Prevent landlord fines

Commercial landlords across the UK face thousands of pounds in fines for failing to meet government housing standards every year. To avoid paying penalties amidst a cost of living crisis, you must keep all your property certificates up to date.

#6 Shop from local businesses

With shipping and import costs increasing in the UK, especially since Brexit, it’s important that you try to shop from local suppliers where possible. Not only is shopping locally better for the environment, but it’s also better for your commercial wallet!

#7 Reward customer loyalty

Without customers, you wouldn’t have a business in the first place. So make sure you’re rewarding customer loyalty in any way possible to ensure they continue choosing you. You can offer exclusive discounts and rewards or even give them handwritten thank you cards.

#8 Get a business loan

It might be worth considering different financing options with loan providers or via equity crowdfunding to get your business through the tougher months. With a small investment from a third party, you can worry less about paying the bills and focus more on selling.

#9 Invest in technology

See what areas of your business you can automate or digitise to increase productivity and efficiency. This can be as straightforward as implementing a QR scanning system at tables in your restaurant so customers can view the menu and order right from the table.

#10 Consider online options

No matter what industry you’re in, there are almost always ways you can diversify your business’s income and open up new opportunities by creating an online store or selling your services virtually. If you still need to, see how you can capitalise on a digital market.

#11 Evaluate cash flow

It’s essential that you keep a close eye on your cash flow over the next few months and plan for the worst-case scenario. Once you can clearly see how the money you expect to come in and out of your business, it will be easier to find areas to cut or delay to save money.

#12 Reduce business rates

Did you know that 1 in 3 businesses are owed a substantial business rates refund after overpaying without realising? The last date to claim this refund is 31.03.22, so make assessing your business rates a priority if you want to save money!

Learn more about saving money on business rates in our previous blog.