In today’s dynamic business landscape, it’s no secret that SMEs face challenges in staying competitive. However, there’s a powerful strategy that often goes overlooked – reviewing your costs and overheads.
In this comprehensive blog post, we will delve into the top strategies for maintaining competitiveness while shedding light on how cost reviews can transform SMEs into fierce competitors.
In the face of rising costs and economic uncertainty, UK businesses are facing a pressing challenge:Â
At DMT Solutions, we understand the unique pressures faced by UK businesses, and we’re here to help you navigate these challenges and emerge stronger.
Our team of experienced cost reduction experts is committed to helping businesses like yours identify and eliminate unnecessary overheads, streamline operations, and unlock hidden savings opportunities.
Identifying the Hidden Costs Draining Your Profits
Many businesses are unaware of the extent to which unnecessary expenses are eroding their bottom line. From bloated software subscriptions to inefficient energy consumption, these hidden costs can accumulate over time, silently siphoning away the profits you’ve worked hard to earn.Â
DMT Solutions takes a comprehensive approach to cost reduction, meticulously examining every aspect of your operations to identify and eliminate these hidden drains.
Unleashing the Power of Automation
In today’s technology-driven world, automation is not just a buzzword, it’s a necessity. DMT Solutions helps businesses harness the power of automation to streamline repetitive tasks, reduce human error, and free up valuable time and resources. By automating mundane processes, you can empower your employees to focus on high-value activities that drive revenue and growth.
Negotiating with Vendors: The Art of Savvy Savings
When it comes to vendor negotiations, many businesses feel powerless, often settling for unfavourable terms that eat into their profits. DMT Solutions brings expertise and leverage to the table, skillfully negotiating with vendors on your behalf to secure the best possible rates and terms. We understand the dynamics of vendor relationships and know how to extract maximum value for your business.
Optimising Your Software Landscape: Eliminating Wasteful Subscriptions
In today’s software-driven world, it’s easy to fall into the trap of subscribing to multiple applications, many of which go underutilised or are simply unnecessary.Â
Conduct a thorough audit of your software landscape, identifying redundant subscriptions, outdated programs, and underutilised features. Optimise your software portfolio, eliminating unnecessary expenses and streamlining your operations.
Embracing Energy Efficiency: Saving Money, Saving the Planet
Business energy costs can be a significant burden, especially for those with large physical spaces. DMT Solutions helps businesses implement energy-efficient practices, reducing consumption and lowering utility bills. We identify areas of energy waste, recommend cost-effective solutions, and guide you through the implementation process.
Partner with DMT Solutions: Unleash Your Profit Potential
At DMT Solutions, we’re not just about cost reduction; we’re about helping businesses achieve their full potential.Â
We understand that every business is unique and we tailor our strategies to your specific needs and goals.
We believe that every pound saved is a pound earned, and we’re dedicated to helping you secure the financial freedom you deserve.
With our expertise, dedication, and unwavering commitment to client success, we’re confident that we can help you unlock significant cost savings, boost your profitability, and propel your business to new heights of success.
Don’t let unnecessary costs and overheads hinder your business growth. With our proven strategies and unwavering commitment to client success, we’re dedicated to helping businesses like yours streamline operations, eliminate wasteful expenses, and achieve the financial goals they deserve.
Contact DMT Solutions today for a free cost review and embark on a journey of cost optimisation and profitability enhancement.
Together, we’ll transform your financial landscape and unlock the true potential of your business.
Today, we are thrilled to announce that the Procurement Act has officially received Royal Assent, marking a pivotal milestone in the government’s commitment to fostering lasting change and prosperity.
The Procurement Act, now enshrined in law, promises to bring about one of the most significant overhauls in the history of procurement regulations in the UK.
Its far-reaching implications will empower small businesses, creating a more equitable and inclusive business landscape for economic growth and development.
Key highlights of the Procurement Act include:
We invite small business owners and entrepreneurs to embrace this historic change as an opportunity to propel their businesses to new heights.
The Procurement Act is a testament to the government’s dedication to fostering a thriving and resilient small business ecosystem.
If you would like to make your business more competitive and want to know more about the opportunities for small businesses, please visit https://dmtsolutions.co.uk/
Have the recent changes in legislation changed your views on the Government and Ministers?
Buying power should be a priority for UK small businesses that have been hit the hardest in the last few years by Brexit, Covid-19, the Ukraine war raising the price of goods and inflation.
Although the business outlook looks aggressive, businesses need to remain resilient and confident to overcome the next few years.
As a small business, we understand the hardship companies face when getting the best deals from suppliers. Many suppliers will look favourably and offer deals and discounts towards companies that spend more money. For those organisations that do not spend as much or are less frequent in usage, they struggle to find a supplier that can offer preferential rates, which costs time, resources and money – which is why many small businesses lose out in the buying stakes.Â
Not being able to command discounts from suppliers makes it harder for SMEs to compete against competitors.Â
The pandemic combined with tighter margins and rising costs, forced many small businesses in the UK to shut their doors for good. From 2021 to 2022, there were 581,824Â dissolutions in the UK, an increase of 32.9% compared with 2020 to 2021, the highest number of dissolutions on record*.
In order to strategically advance our position and the circumstances of our clients, we became a part of the UK’s largest buying group with the buying power of an FTSE 250 company.Â
As a business, by joining the buying group, we were able to reduce many different business costs and overheads, making us more competitive and enjoy superior rates and deals that were not available on the open market or to our competitors. 🙂
There are several benefits to having buying power:
Now is the perfect time to review your general expenses and uncover potential opportunities for savings. Here are some areas to focus on:
Fixed Costs – These are your regular, predictable expenses consistent throughout the year. If you receive any notifications of changes, take the opportunity to evaluate your options. Consider whether you can find a better rate elsewhere or adjust your sales plan to accommodate these costs.
Variable Costs – Expenses that fluctuate with usage can often be negotiated. Don’t hesitate to have a conversation with your supplier to maintain a fair price or secure a volume discount.
Investment – If you need to drive your business forward with external help or new technology, research the costs and plan for it. Helping you focus on your sales goals and plan ahead to achieve them.
By joining our buying group for free, businesses can save up to 75% on their business costs and overheads.
With such huge savings, businesses can reinvest their capital into their company for growth, saving or creating more jobs, marketing, expansion, buying more stock, and so much more.
By anticipating your future expenses, you can ensure that your sales and profits will cover them. This forward-thinking approach will give you the confidence that you’re on the right track to reach your business objectives.
If you would like to cut your business overheads, then Contact Us for a free, no-obligation business review.
*Source: gov.uk
As we find ourselves amid an inflationary period, businesses must look closely at their finances and find ways to reduce costs and overheads.
Inflation can have a significant impact on businesses, causing prices to rise and putting a strain on profits. In 2020 UK inflation was around 1%, and by October 2022, it shot up to a whopping 11.%.
In this blog post, I will discuss why businesses need to reduce costs and overheads during inflation and provide some funny examples to make it more enjoyable.
Firstly, let’s talk about what we mean by overheads. Overheads are expenses not directly related to producing goods or services but are still necessary for running a business. Examples of overheads include rent, salaries, business energy, and office supplies.
During inflation, expenses can rise, and businesses need to quickly find ways to offset these costs.
Now, I know what you’re thinking – “Reduce costs? That sounds boring!” But fear not, my friends, for I have some amusing examples to help illustrate my points.
Let’s start with rent.
Imagine you are the bakery owner, and your landlord has just informed you that they will be increasing your rent due to inflation.
What do you do?
You could negotiate with your landlord to make any alternative arrangements. For example, you could offer them some of your delicious pastries in exchange for a rent reduction. Maybe your landlord has a sweet tooth and would be happy to make a deal.
Another way could be to look at your business rates to see if your business is eligible for discounts or savings.
Next, let’s talk about salaries. Of course, as an employer, you want to ensure that your employees are compensated for their hard work. However, wages can become a significant expense for businesses during times of inflation.
One way to reduce this cost is by offering non-monetary benefits such as flexible working hours, stock options or the option to work from home.
Working from home can be a great way to keep employees motivated and happy, reducing your salary expenses and employees saving on travel costs.
Another way to reduce overheads during inflation is by finding ways to reduce office expenses. For example, encourage your team to get creative with DIY solutions instead of buying expensive office supplies. For instance, you could include making paperclips out of wire or repurposing old cardboard boxes as storage containers.
Not only will this save you money, but it could also lead to some entertaining team-building activities.
Finally, let’s talk about utilities. During inflation, the cost of energy utilities such as electricity, gas and water rates can rise, putting a strain on businesses.
To reduce these costs, encourage your team to be more mindful of their energy usage. For example, you could hold a competition to see who can develop the most creative ways to reduce energy consumption, such as turning off lights when leaving a room or only filling the kettle with the water you need rather than a whole kettle.
Not only will this reduce your utility bills, but it could also promote a sense of camaraderie and environmental responsibility among your team.
Reducing costs and overheads during inflation is essential for businesses to stay profitable and competitive.
Companies can easily weather the inflationary storm by finding creative solutions to reduce expenses and promote mindful habits.
So, let us all embrace our inner DIY enthusiasts and find ways to reduce costs while having fun.
We recommend keeping your current policy if we can not find you better coverage for less.
We will benchmark your current policy for free, so you can be confident that you have the right policy in place.
Our advice is free of charge, independent and non-biased.
We are paid a commission by the partners we work with when you buy a policy or take a service from them.Â
As part of our commitment to the environment, we will plant a tree on your behalf with 1001 Trees UK
Cash flow is the lifeblood of any business. It is the amount of money that flows in and out of the business, and it is essential to its survival.
A healthy cash flow means the business can pay its bills, invest in growth, and weather unexpected expenses. However, when there is tight or negative capital, businesses can experience real pain.
Cash flow is critical for businesses because it affects their ability to operate and grow. A positive turnover enables a business to:
There are several reasons why a business may experience cash flow problems, including:
When a business experiences cash flow problems, it can have several adverse effects:
There are several strategies that businesses can use to improve their funds:
Financing can also play a crucial role in helping businesses improve their liquidity. Some financing options include:
While financing can be an effective way to improve capital, there are also risks and considerations to keep in mind:
XYZ Company is a small manufacturing business struggling with cash flow. They have several slow-paying customers and have had unexpected expenses in the past year, including a broken piece of equipment and a legal dispute with a supplier.Â
As a result, they have been unable to invest in new equipment and postponed expansion plans.
To address its money problems, XYZ Company could consider several strategies, including:
Cash flow problems can cause real pain for businesses, but some strategies can help. It’s vital for businesses to regularly assess their cash flow and take action when necessary to ensure their financial health.
This may involve implementing more efficient cash management practices, exploring financing options, or making difficult decisions to reduce expenses.Â
By taking a proactive approach, businesses can improve their cash flow and position themselves for long-term success.
Contact Us for a FREE Business Cost Review. We aim to increase business cash flow by 15-58% within six weeks.Â
