7 Ways to Reduce Your Business Expenses

Posted on the 28 October 2019 by Anees @ZulfiqarAAnees

There are two ways for your company to earn more money. First you could increase your sales and income; secondly, you could reduce your expenses. The increase in sales requires a lot of planning, strategy and that many moving parts are put online, but reducing your business expenses is something you can do very easily; All you need is a little time. Here are seven ways to reducing business expenses:

1. Move your office to a more accessible area

Thanks to the power of the Internet, not all businesses need to rely on locations with access to highways or high traffic to be successful. Consider changing your commercial location to reduce the monthly rent.

Many times, especially in larger cities, the further you are from the action, the lower the cost of the rent. While this will not apply to all companies, it is something to keep in mind if you do not have customers without an appointment and attend a consumer base that is not local.

2. Convert your phones to a cloud-based system

This is more advice aimed at freelancers and solopreneurs, rather than larger companies, but it is something that small teams can also consider. You can eliminate the cost of desk phones and high monthly plans by switching to a cloud-based system that routes calls through a smartphone.

Most consumers prefer to communicate via email, social networks, live chat, and web forms, rather than using a telephone. Check out the current use of the phone in your business and, if it is minimal, consider moving to a cloud-based option.

3. Review your monthly subscriptions

Most companies are subscribed to many SaaS software applications but never use them. Sometimes you sign up for a free trial and then forget to deactivate the charge, which is a small income that you don’t consider month by month. If it is a small item, the amount may go unnoticed for an extended period of time before you realize that you have been wasting money.

It is a good idea to audit your company’s bank statements often, at least quarterly, to see if you can detect any unnecessary expenses. The cancellation of unused subscription products or services can end up saving several thousand dollars a year.

4. Convert unused office space into a coworking

Do you have any unused office space that is just collecting dust? Consider sublet it or turn it into a coworking space. Not only can this help absorb part of the leasing expenses, but having more companies in the same space can help generate creativity and can help develop new partnerships and business opportunities.

You should check your current lease to see if the sublease is allowed, and most likely, you will have to submit a joint work proposal from the current owner to see if it is possible.

5. Take advantage of credit cards

You might be thinking, “Credit cards? Are you crazy? I want to save money, not accumulate more debt.” But there is a big difference between the smart use of the credit card and the irresponsible and dangerous use.

Channeling all your business expenses through one or two cards, and then paying the total balance each month, is an easy way to accumulate enough points to save you a huge amount of money on airfare and hotels for your business travel needs. Even if you don’t travel, there are many cashback opportunities that can lead to lower overall spending.

6. Search for multiple offers

It is always a good idea to look for additional offers when you work with a supplier or manufacturer. Yes, it takes longer, but in the end, the savings can have a big impact on your final result.

I will give you an example of real life. A startup with which I am involved in the health and beauty sector found a manufacturer with whom they were going to make a large production order. Only two companies were contacted, and then they selected the “least worse” provider.

It took me one day to make calls and send hundreds of emails, but in the end, I was able to find a manufacturer that charged 45 cents less per unit. That, in 10,000 units per order, translates into a savings of $ 4,500. Do not be lazy. The extra work you do can dramatically reduce your expenses.

7. Constantly check, measure and optimize your advertising spending

If you have an “old-fashioned” mentality when it comes to social media investment, pay per click (PPC), and media buying, it will end up with a lot of wasted advertising spending. Through my company, I consult with many brands, and nine times out of 10, I find wasted advertising spending simply because nobody was spending enough time in the review, measurement, and optimization of campaigns.

Back to Featured Articles on Logo Paperblog