In this uncertain, competitive market, every penny should be audited. If you are currently looking for ways to make more money, you have two options to choose from. One is to boost your sales, and the other, reduce your business expenses. However, the first option needs a lot more planning, strategy, and time to make it happen. If you want an easier approach, go with the latter.
Talking about reducing expenses, you need to assess what’s necessary for your company, what must be eliminated, and what can be reduced. Most importantly, learn to control your expenditures properly. Need help? Check out our guide on how you can reduce your costs without compromising on the vital parts of your business operations.
Change your business location.
If you have a chance, think about changing the location of your business. If your operational needs permit you, you can try moving into a smaller city where the cost for commercial rents is lower compared to big cities. The farther you are from the action, the lower the cost. This is also ideal if you service a customer base that is not local and you aren’t expecting any walk-in customers. Alternatively, you can consider switching to a remote work setup.
Switch to energy-efficient appliances
If your utilities are eating up a big part of your income, maybe it’s time to consider switching to energy-efficient appliances. They might be a bit more expensive, but they can greatly reduce your energy bills if you think long-term. Plus, your business can take advantage of green energy tax credits and other expenses with various government-sponsored rebates. For instance, you can use compact fluorescent light bulbs in your workspaces, also known for being long-lasting. When buying energy-efficient appliances, make sure they have the Energy Star label.
Opt for freelance workers.
Let’s be real; while full-time employment has tons of advantages, it is also expensive to maintain one. You have to offer a great salary, insurance, training, sick leaves, vacations, and tons more. By opting for a temporary team, you can avoid these huge overhead expenses. Hire on a per task or project basis to help reduce your operating costs while boosting key performance indicators. Luckily, you can outsource almost everything today, from website development, content writing, digital marketing, and managing your business pages.
Hire the right accountant.
If you still have a trusted accountant to manage your business finances, you’ll have to consider hiring one right now. It’s necessary to have a professional who can smartly review your spending, manage your expenses, and release or redirect funds to other vital parts of your business. Furthermore, accounting firms like Serenity Financial Services can advise you on reaching your financial goals or reducing your tax burdens. With the help of these professionals, you can have timely and accurate financial reports, allowing you to make adjustments where necessary and track your financial progress.
Think about how much money you waste from printing copies for everyone, which typically end up in the trash. Check your monthly printing cost and evaluate what can be transferred to digital cloud or software. For instance, take advantage of online payment and invoices systems instead of manually doing such tasks. Instead of mailing advertorials and coupons, switch to email marketing, which is more cost-effective and easier to do.
If you’re still relying on passing paper for company notifications, collaboration, and project management, consider paper-free internal communications. Make use of platforms or apps such as Asana, Slack, Microsoft Teams, Google Docs, and Trello. You can also use signature software like Adobe Sign and DocuSign to reduce the need for printing and faxing of legal documents and contracts.
Audit monthly subscription billing.
If your company is subscribed to many SaaS software applications and you barely use most of them, review what you can get rid of. Are there free trials you’ve signed up for and forgot to unsubscribe? What about undetected small ticket items that are slipping into your bills? Take time to do quarterly audits on your bank statements to see if there are any unnecessary expenses. Save thousands of dollars annually by canceling unused subscription services.
Cutting expenses and being cautious in controlling expenditures is imperative for all types of businesses, especially startups. Know what business areas to spend on and where to save. By doing cost-cutting using the above-mentioned tips, you can increase your profit margin and have more funds to invest in improving your products and services. Plus, this saves you from cash flow issues in the future. Think outside the box and compete in the crowded marketplace by reducing your overhead.