With rising inflation, most small businesses have been faced with increased operational expenses. Inflationary pressures are forcing business owners to find new ways to lower their overhead costs.
Cutting costs isn’t just a smart move for many companies. It is now a necessary one.
In this article, we reveal seven ways to help reduce your business expenses.
1. Look for new vendors.
“If you’ve been working with the same supply chain for years, you may be missing out on excellent bargains. While researching new vendors and wholesalers takes time, the cost savings can be enormous if you’re not currently paying the best prices for products and services.
Additionally, if your market or niche has grown while you’ve been in business, you may find many more vendor options than when you initially opened your doors.
If you’re a longtime customer, you can also approach current vendors about renegotiating your contract. If they don’t want to lose an account, they may be willing to offer discounts or add-ons that save you significant money.”
2. Go paperless.
“The cost of paper, ink, mailing supplies, and postage may seem minimal at times, but it can add up to a large business expense. Going paperless by not printing unless necessary, transitioning to a digital invoice and bill payment system, and filing all important paperwork on your computer instead of a file cabinet can help you reduce some of the most common recurring business costs.”
Source: the balance
3. Create a budget.
“Budgeting is essential when it comes to reducing business costs. You can’t make smart financial decisions if you don’t know how much money is coming in and out each month. A budget allows you to have a daily view of how you can reduce business expenses. A working budget allows you to make adjustments as you go. That way, you can cut business costs in real time – not after the fact. As far as how to reduce business costs, this tip is simply a no-brainer.”
4. Consider your office supply costs.
“Supplies account for a larger portion of your budget than you might imagine. Though having the best pens and the highest-quality paper might seem important, it’s surprising how much money you can save by making small changes.
Start by tracking supply usage within your office. Seeing what you truly use allows you to shorten the list of necessary supplies. You should also take the time to shop around for the lowest prices available. You can find some great deals by shopping at nontraditional office supply sellers and online retailers, like Amazon, and by buying in bulk.”
Source: Business News Daily
5. Eliminate discretionary spending.
“If you’re planning on painting your building, buying new equipment, or hiring additional employees, wait. You should only move forward with expenses that are essential to carrying out a crucial marketing or diversification plan. In virtually every other instance, just close your checkbook.
Even if you’ve made a contractual commitment to spend money, you can try to negotiate your way out of it. If you’re willing to pay a reasonable buyout fee, ending an unfinished contract is legal and honorable. After all, once clued into your financial problems, the other side might be happy to accept a partial payment from you rather than risk your business failing and receiving no payment at all.”
6. Hire interns.
“In today’s economy, there are a lot of graduates looking for jobs or internships. They will do anything to work in a company for some experience.
It’s a win–win situation for everyone involved. A lot of them are bright minds with talent and will work hard to grow your company and for them to gain experience. You might have to give them some training, but it will definitely still save you a lot of money in the long term.”
Source: Outsourcing Insight
7. Negotiate with your landlord.
“Rent is often one of the biggest expenses for small businesses. If you’re not locked into a lease, consider moving to a less expensive location. You may also be able to negotiate a lower rent with your current landlord.
If you’re renting your office space, it’s important to negotiate with your landlord when your lease is up for renewal. If they know that you’re considering other options, they may be willing to give you a better deal.
You should also ask for any upgrades that you need, such as a new HVAC system or more energy-efficient windows. These upgrades will save you money in the long run, and your landlord may be willing to cover the cost.”
Need Business Funding to Pay Expenses?
First Union Lending is here to help! We work with small business owners throughout the U.S., getting them the money they need, when they need it—not weeks or months from now. Some borrowers have the cash in their accounts in only two business days.
From short-term loans to merchant cash advances, we have financing solutions to help you any time of the year.
Call 863-825-5626 today and let’s get started together.