3 Ways To Boost Your SME’s Profit By Slashing Your Outgoings

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Written by Michael Foote, founder of Quote Goat, has over 13 years experience working in the finance, insurance and currency sectors.

No matter whether you’re business is currently struggling due to Coronavirus or booming as a result, the majority of businesses exist to generate a profit.

The obvious way to boost profit is to increase sales, however another approach which is often easier and quicker to implement is to cut your outgoings.

Below we outline 3 things you can do today to increase your profit by an average of £5,000 per year.

  • Switch Business Energy Supplier – Average saving £955 per year

Just like home energy bills, loyalty to the same supplier year on year is rarely rewarded, proven by the fact that the average business makes a saving of £955 per year when they compare business energy quotes through Quote Goat. Switching is hassle-free and managed by the business energy switching team, which does beg the question; what are you waiting for?

  • Cancel unnecessary services/software/licenses – £2,400 per year saved at Quote Goat

Even the smallest businesses are paying for products and subscriptions on a direct debit that are either unused, unnecessary or simply forgotten about. Taking the time to assess your monthly payments and potentially being a bit more ruthless as to what you actually need will create profit-boosting savings. Quote Goat recently under took this exercise and cut back costs totaling more than £230 per month including unused Office 365 licenses, subscriptions for SEO-related tools and a press notification system.

  • International Payments – savings up to £4,000 per £100,000 exchanged.

If your business operates on an international basis in any form, you will undoubtedly be paying too much when you convert GBP into another currency or vice versa. The ultimate mistake here is to let your bank handle the currency exchange. Banks are known to charge as much as 5% of the transaction amount when they exchange funds. This amount is built into the exchange rate they quote you, which makes it tricky to spot unless you compare it with the interbank exchange rate at the time of the exchange. Utilising a currency broker can create significant savings as their rates can be as little as 0.10% (and even lower) dependent on volumes.