All good entrepreneurs know that they need to constantly be trying to find new ways to make their expenses account a bit leaner. Not only does this help to keep your bills and payable invoices down to a minimum, but it also means that your overall net profit will be higher.
Even though most business leaders know that it is in their best interests to try and reduce their company’s spending, doing so can be incredibly difficult. That’s especially the case if you have the similar expenses each month – you might have become very used to them and be of the opinion that they are actually necessary to the smooth running of your company. However, that is rarely the case, and reviewing your expenses with a critical eye can help to expose some ways you can reduce and limit the costs and expenses of running your business.
Need to figure out how you can do this yourself? There are plenty of steps you can take, but here are some of the easiest to implement.
Keep things digital
You should try and move all of your business communications to a completely digital platform. For example, it’s a good idea to send all messages and notes via email. This way, you don’t have to deal with the expenses of printer paper and postage and packaging. It’s also a good idea to see if your suppliers have a digital-only account that you can sign up for. As more and more businesses are looking to reduce their carbon footprint, lots of suppliers are trying to encourage their clients to receive and pay their invoices digitally. This then cuts down the carbon footprint that is caused by using printer paper and envelopes. In an attempt to encourage their clients to go digital, most suppliers now offer discounts for those who do so. So, it’s a good idea to see if there are any benefits for going digital.
Negotiate with suppliers
When was the last time you negotiated you negotiated your costs and expenses with your suppliers? It’s important to remember that most prices aren’t always set in stone, and most companies will be willing to discuss their costs, especially with other businesses who they have a long and loyal relationship with. So, it’s always worth giving your suppliers a call to see if there is any change they can do to their prices. You never know what kind of deals and discounts you might be offered!
Do you often wonder when is outsourcing a good idea? Full-time employees can be very expensive, as you need to be able to pay a full-time wage and all of the usual benefits, such as pension payments and vacation pay. There is one way you can shed these expenses – outsource your work instead. If you hire freelancers and contractors for short-term projects, you won’t be obliged to provide them with any benefits. Even though their wages will be higher than what you would normally pay full-time staff, you will still find that they are cheaper in the long run because you don’t have to pay for any employee benefits.
Pay bills early
Do you always wait until the very last minute to pay all your bills and invoices? Well, that might not be the best strategy when you are keen to trim the fat off your expenses. In actual fact, you could find that you get some dollars knocked off your bill! That’s because some companies offer small discounts to their clients who pay up early. This is to try and encourage people to pay as quickly as possible so that they don’t ever have any cash flow worries.
One of the biggest expenses that most companies face is travel. This is normally international travel to meetings and conferences. Thankfully, there are now more tech devices that can help us connect with others who are in offices around the world. These days, there really aren’t many reasons for you to travel around the world for a meeting. You can simply arrange a Skype meeting between your two offices. Sure, you might have to figure out a time to suit the two different time zones, but that shouldn’t be such a huge issue for you both!
As you can see, there are lots of ways you can work at bringing your monthly bills and expenses down to a minimum. And these are just the tip of the iceberg – there will be lots more ways to cut your expenses if you are careful!