Cutting Business Costs During the Cost-of-Living Crisis

Posted on 24th July 2023

More than ever, businesses need to start thinking about ways to reduce their costs during the cost-of-living crisis.

One of the biggest business expenses is rent, and it doesn’t look like it’s getting any cheaper. Data from Statista suggests that industrial and office rents are expected to grow the most between 2022 and 2026.

Whether you have an office or a brick-and-mortar store, it’s worth asking yourself whether you really need all that space. If not, then downsizing should be considered as it is a great way to cut down costs and improve your business’s efficiency without compromising on the quality of your products and services. Here are our top downsizing suggestions.

Change your location

The bigger your space is, the higher your rent is. Of course, location and other factors also determine the rent, therefore this rule might have some exceptions. When renting a big office or a commercial space, not only is your rent higher, but so are your other expenses.

Having more rooms to heat up, some of which are not even in use all the time, increases your utility bills, especially with the rising gas prices.

If you decide to rent a smaller space, make sure that the new location is accommodating to your current customer base and that the rent corresponds with what you’re getting.

It’s also wise to consider that moving to a more central location can bring in a new customer base and more revenue. Even if your rent isn’t significantly cheaper, the income from the increased traffic to your new location will make up for it.

Share your space

Sharing your current space is a great way to cut down business costs and can also bring in a new audience to your business. However, it’s important to carefully select the company you’re sharing your space with – the more aligned with your values and services it is, the better.

By sharing your rent, utilities, and other costs with another business, you’re greatly reducing your expenses.

Use storage containers

Storage containers are the perfect downsizing option for businesses of all sorts.

If you’ve moved to a smaller space in order to save on rent but still have items that need to be stored somewhere, such as desks and chairs, an onsite or offsite storage container for rent will help you keep them organised. This option is cheaper than renting a large office or retail space and will also remove all the clutter from your eyesight, helping you be more focused.

Storage containers are incredibly useful for businesses that are constantly on the move and don’t want to be tied to one particular location. With flexible lease agreements, you can upscale or downsize your businesses depending on your needs, knowing that your business supplies are stored safely and at a fixed price.

Small and medium businesses with not many employees who are able to perform their work remotely might not even need an office space at all. Nevertheless, there might be certain business supplies, such as paperwork and stationery, that needs to be stored in a secure location, and storage containers can help with that.

Large businesses and enterprises can also benefit from them. Many retailers, wholesalers, and logistics businesses have to allocate a large proportion of their budget to warehouses. They tend to be more expensive and often at inconvenient locations. Storage containers are a cheaper and more convenient option.

Downsizing is a great way to weather out some of the economic headwinds and shield your business against the rising inflation. Given the options, consider what’s best for your business and your customers.