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How to Reduce or Eliminate Common Business Expenses

Running a business can come with a ton of business expense. At times you might even wonder how you’re going to make it through the month without going into the red. If you want to try and curb some of your expenses, then there are a few ways for you to do this.

Paperwork

Costs can add up quickly. Ink, machine maintenance and even paper can really hurt your bottom line, and if that wasn’t enough, your employees will also have to deal with printer issues all the time. If you want to avoid all of this then you need to try and streamline your operation so that you can cut as much cost as possible. Online signature services and even contracts can easily be used, not to mention that you can also lower the amount of printers that are in use at any one time. For example, if you have a single printer then you only have to buy one lot of ink and then one pack of paper. The only difference is that people have to wait a few minutes to use it.

Out of Town Conferences

Travel can be expensive to say the least. You need to try and do less of it by investing in some website conference software. When you do this, you are then given the chance to have face to face conversations from just about anywhere around the world. Of course, you should never try and eliminate travel entirely. You should still be having in-person meets and you should also be trying to put some of your profit to one side so that you can accommodate any travel requirements you have.

Only Buying from Big Companies

Big service providers really do expect small businesses to fit into a template. This is the last thing that you need. If you go to a small business however, then they will be much more likely to try and meet your needs and customise their services as well. It’s also worth checking local listings to see if there are any other businesses that can offer you a more personalised service for less money. Little changes like this can make a huge difference to your bottom line.

Insurance

Insurance is not cheap to say the least. You should never cut it out entirely because it could save your business if you ever end up in a bad situation. You should however go over your agreements on a regular basis so you can find out if another company could offer you a better deal. Insurance rates tend to fluctuate over time, and it is more than possible for you to take advantage of this. If money is tight then raise any deductibles that you have on your policy. You will get far lower payments if you do this, but if disaster strikes then you will have to pay more.

Add Freelancers

Do you really need full-time staff to handle the smaller jobs that need doing? Probably not. If this seems to be the case, then it may be worth hiring a freelancer. They can take care of any specialised tasks you have and they will also be able to do it for a much more affordable price. Of course, when hiring a freelancer it is important that you do your research. If you don’t then you may end up hiring someone who is not worth the money, and in some instances you may even have to do the whole job again afterwards.

Interest

A lot of small businesses use credit cards so that they can keep business operations running smoothly. This is great because it does stop you from having to take out loan after loan, but it can come with a high-interest rate. If this is the case, then you need to pay it off every month. Interest can add up quickly and if you don’t get into good habits with paying your debt off, you may run into financial difficulty as a result. If you want to get around this then you need to find a credit card with the lowest possible interest rate. You also need to make sure that you swap your debt to a 0% interest card where possible. This will give you more time to pay off your debt, and it will give you some financial cushion when it comes to the overall price you’re paying.

Energy Wasters

Green energy isn’t just good for the environment. It’s great for your wallet as well. If you can, you should always install energy-efficient lights and even climate systems as well. When your employees leave the premises, they should always turn off their system. You may even want to invest in automatic lights as well so that they only come on when someone enters the room. This is fantastic if you want to save money and they are ideal for bathrooms and even storage rooms.

New Equipment

It’s very nice to have new things, but if they don’t offer you any kind of significant advantage over their used counterparts then it’s not worth investing in. Before you go and buy everything brand new, consider pricing up how much it would be to buy it used. This can save you a small fortune and it won’t harm your business in any way. You do however have to remember that if you invest in equipment that is poor quality then it could have an impact on your employee morale.

Needless Space

Do you have clients who are always coming in and out of your office? If not, then you may want to think about moving to another location. You will be paying far less rent and you can even offer to do remote work as well. This can really help you out if you are running a small business or even if you are just starting up. When you feel as though you can’t physically handle the work you have, that’s when you look into expanding and investing in quality office space because there is a high chance that your loyal customers will come with you when you move.

Cloud Systems

If your company is spending a ton of money on hardware, then you will know how expensive this can be. If you switch to cloud computing, then this can save you a ton of money. The financial investment will be well worth it and you may even free up some physical space. If you fully utilise the cloud then you will be able to share documents across multiple computers in a matter of seconds, not to mention that it can also give you an added level of security.

Buy What You Need in Bulk

Buying in bulk can be tricky. If you spend too much on something you don’t need then this will hurt your bottom line significantly, if you execute it well however then this can give you a ton of rewards. For example, if you sell a product then buying in bulk would be a great idea. You can make more profit as a result, and you can also sell the items for a lower price. This will help you to get more customers and it will also help you to build a loyal base for your business. When you are able to do this, you can even work with vendors and suppliers to see if they can lower the price even further.

Utilities

Your business will probably have very high utility bills. Your employees will be continually flushing the toilet, washing their hands, filling up their coffee and even washing up. Over the months, this can add up and you may be left with some hefty bills. If you want to get around this then invest in a 5000 litre water tank. You might also want to invest in some low-flow taps as well. If you install these across your business then you can lower your bills significantly.

Standby

Believe it or not, your appliances and computers are always using energy. This is especially the case when they are on standby. If you want to prevent this then it helps to have a single switch that controls all of your electronics. This way, when you are shutting the doors for your business, you can simply flick the switch and know that you are not using energy overnight. It doesn’t take long to get something like this installed and your business will be way more energy efficient as a result.

So, there are many ways that you can save money when you run your own business. When you take the above tips into account, you will soon find that you can save a small fortune with very little effort and this can make your small business way easier to run. If you need some more ideas, then you can easily rent out any office space that you are not using. You can even advertise other businesses by utilising any billboard space you are not using right now as well.

About the author, Mark

Mark Asquith is a serial entrepreneur who has built globally successful design, marketing, software and digital businesses since he quit his real job in 2005.

A passionate podcaster, global keynote speaker and helpful bloke, Mark is the co-founder of Podcast Websites and the creator of Excellence Expected. He has a terribly embarrassing beard.

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