10 ways tradespeople can reduce their day-to-day business costs
The last few years have placed a lot of financial strain on tradespeople, with the cost of living crisis adding to rising material prices and the impact of Covid-19.
As a result, many have tried to reduce their outgoings, and our recent research found that an increasing number of workers are repairing their own tools (16%), keeping kit for longer (27%) and minimising power tool usage (30%).
Having discovered that tradespeople spend an average of £1,110 on tools each year, we spoke to Thomas Goodman, construction expert at MyJobQuote, to share advice on how to reduce this expense and cut a variety of other day-to-day costs.
1) Quality over quantity
“Invest in good quality tools, particularly those you use regularly. While the initial outlay may be higher, quality products are less likely to fail or break. Ensure you take out tool insurance too.”
2) Buy in bulk
“Materials are expensive but buying in bulk can help you save money. Getting quantity discounts on regularly used materials will keep costs down.”
3) Know your expenses
“Research which expenses you’re allowed to claim back on, so when it comes to filling in your tax return, you can get as many deductions as possible. Keep track of your deductible expenses weekly.”
4) Employee fuel cards
“Use fuel cards for you and your employees. You can track how much you’re paying in fuel and all invoices go directly to your business for use when you fill in your tax return. “
5) Scout for van insurance
“Shop around for van insurance instead of using the same company every year and accepting an automatic renewal. Get a better deal through research or by negotiating your premium.”
6) Use your vehicle as an advertisement
“Use your van for advertising as an alternative to other potentially expensive marketing options. It’s basically a mobile billboard. Spend some money putting your business name, logo and contact information on your van to attract new customers.”
7) Keep updated with the latest discounts
“Monitor your favourite suppliers to check for offers and discounts on materials that you use regularly. Sign up to receive offers automatically and take advantage of them when they’re available.”
8) Find the best phone and internet packages
“Make sure you also shop around for the best phone and internet deals, as these can make a real difference to your business expenses. Like your insurance, it pays to change providers occasionally to try and secure a better deal.”
9) Automate your administration
“Business management software can greatly increase your efficiency and improve your productivity, by automating parts of your administration, such as invoicing, to save time and money.”
10) Switch to an electric or hybrid vehicle
“Consider switching to an electric or hybrid vehicle, not only to reduce your carbon footprint, but also to save money on fuel costs.”
