CUT SPIRALING COSTS In association with AIB

Adrian Moynihan, Business Startegist, AIB

Adrian Moynihan, Business Strategist with AIB outlines some simple strategies to help reduce your businesses banking bill

Last year was another strong year for Ireland exhibiting a diversified, resilient and flexible economy. Economic growth rates were very strong in 2006 with forecast GDP and GNP growth rates of approximately 6% and 7.3% respectively. The labour market remains buoyant with strong employment growth and unemployment levels amongst the lowest in Europe. Exports performed strongly in 2006, particularly in the food and drink sector.

Buoyant Business Start-ups

Much of this growth resulted from the small to medium business sector, which now stands at over 250,000, with a further 20,000 new businesses established in Ireland in 2006. While overall trading and economic conditions continue to remain positive, 2007 will be the year when business owners are faced with the real challenge of improving competitiveness, productivity and profitability.

Reduce Costs

One area of particular attention amongst business owners is the area of cost management. Like all good business owners, you are probably currently in the process of investigating and examining ways to reduce your businesses cost base. With the recent announcements in relation to rises in energy costs and the national minimum wage to name just a few, more and more business owner managers are taking steps to seriously review their businesses cost base to identify areas where possible cost savings can be made.

Energy, waste management and labour costs understandably tend to occupy the agenda of business owner managers when they are reviewing their business costs as these are often the largest input costs for businesses. As a result however, one area that is often overlooked as part of this process is the area of finance. Through the better use of the right financial products and a more active approach in managing your business’s finances you could make significant savings on your banking bill each year.

Unfortunately, rising business costs have been and continue to be a business reality. They are the main issue and concern for many business owner managers as they pose a real threat to the long term success and future of their business.

Make Significant Savings

They are however an obstacle which can be overcome. For example, if you were to employ all of these measures and examples, it would mean savings of over €2,000 per annum to your business. While finance costs are not the biggest business input costs by any means, significant savings can still be made to reduce the finance costs of your business. Be sure to ask your bank or financial advisor as to how you can save money on your business banking bill.