The motor industry can be an exciting and financially
rewarding sector to work in, particularly if you run your own company. With the
potential to expand, grow or sell your business, you can plan your future and
enjoy being your own boss for as long as you choose.
Like all businesses, motor companies need to cut costs
wherever possible. By minimising
your expenditure, you can ensure more of your turnover is profit. If you
work in the motor industry or you use company vehicles, take a look at three
easy ways to minimise your costs now.
1. Maximising Your
Vehicles, stock, property and equipment are the most
expensive assets for most businesses. For motor-related companies, however, the
cost of purchasing new assets can be a burden. Before you look for financing or
commit to a big purchase, however, it’s important to assess the other options
available to you.
In some cases, renting your equipment can be more
cost-effective in the long-term. As many rental plans include regular upgrades
and repairs, the additional service combined with the low price can give you
the support you need without a hefty price tag.
2. Get the Right
Any company that uses vehicles will require insurance.
However, obtaining insurance for a company car or a fleet of vehicles isn’t as
straightforward as buying car insurance for a private vehicle. You’ll need to
consider whether your insurance covers you for carrying passengers, as well as how
often your company vehicles will be in use.
For some businesses, the use of vehicles increases
significantly at certain times of the year. If you run a seasonal business, for
example, you may want to take out short
term motor trade insurance for Christmas or summer, rather than paying for
insurance all year round. Providing your policy includes laid-up cover, you can
ensure your vehicles are insured during your busiest periods and when they’re
off the road.
If you’re unsure what type of insurance you need or whether
you’re getting the best deal, contacting a specialist broker can be the best
option. With expert advice, you can establish what your insurance liabilities
are and find the most cost-effective cover available.
3. Switch to
As your business grows, you may need more staff to operate.
However, hiring employees can be costly. Instead of taking on employees, you
can obtain the help you need by hiring
subcontractors instead. You’ll have fewer liabilities and obligations than
an employer but still be able to access the expert input you need to help your
business function effectively.
If you run a seasonal business, hiring subcontractors can be
particularly beneficial. Depending on your contract, you can simply hire your
subcontractors as and when they’re needed, instead of paying employees an
Profitability in the Motor Trade
Maximising your profit margins can increase your overall
income, so it’s important to reduce costs and increase productivity wherever
you can. With these handy tips, you’ll find you can substantially minimise your
costs and grow your business more quickly and successfully.