Spending money in business is a necessary requirement. Spending too much money on non-essential purchases is not – it’s important to be able to cut these business overheads as much as possible to create the most profitable business you can. If you feel that your costs are spiraling, it’s time to take a good look at your expenditure and work out some ways to reduce it.
Conduct A Review
The time will come when you look at your monthly expenditure compared to your monthly income and realize that something needs to be done about it. Great! That’s the first step to solving the issue. If you have an accountant, ask them for a list of your current overhead costs. If you do your bookkeeping yourself, you should be able to search for the list through your accounting software. With that list in hand, really delve into it, and be brutal; what costs can you afford to reduce? What can you do without completely? Look for things that you no longer need, or that could be found elsewhere for less money.
Speak to Your Employees
Your employees are the life-blood of your company, and they see it day in day out from a unique perspective. Ask them where they think costs could be saved, and how to make the business more efficient. You might be surprised with what they come up with. You don’t have to implement everything, but taking your employees’ suggestions into consideration could save you money. Remember to thank them for their contributions!
If you have a storeroom, it’s likely that it’s filled with old printers and copiers, perhaps an old fax machine or two. You may no longer have a need for these items, but someone will pay you good money to take them off your hands – see what you’ve got and list it on an auction site, or in the local want ads section. You’ll raise some capital and clear some space at the same time.
Buy in Bulk
Although you might spend more money than you had intended to begin with, buying in bulk will save you money in the long term. Search for deals on the items that you use the most, such as printer paper, ink, envelopes, even coffee and toilet paper. You may be able to negotiate a great deal with your suppliers if you up your order. If you don’t have room to store the extra products in your office, rent a storage unit to keep them safe until you want them. The cost of your savings should off-set the cost of the rental so you’re still saving money.
Don’t shy away from credit cards because you think they’re expensive or difficult to use. They could save you money if you use them correctly. Find a card that has the lowest monthly fees but that also gives you the most benefits, such as air miles, cash back, or other rewards. You can redeem the rewards and save yourself money on your travel, for example. If you pay the credit card off in full each month you won’t get caught up in the problem of interest accruing either.