When you’re a small business, you need every penny you can get to stay afloat in those tough early months and build your business into the thriving company you know it can be. Generally speaking, there are only two ways to increase the amount of money your company makes – you can either increase your revenue, or you can cut your expenses. I know which one of those is easiest to achieve in the earliest days of entrepreneurship!
Here are some tried and tested ways you can start reducing your company’s expenses right now:
If you’re lucky enough to even have your own office space it this stage, it might be that you could save a not insignificant sum by either moving your office to less costly location or by sharing office space with another up and coming company. This is probably one of the most painless ways to reduce your business expenses.
Rent Out Your Office Space
Of course, if you have your office space and you’re loathe to relocate, you could also think about renting out part of your office as a co-working space. There are lots of new entrepreneurs, home workers, and freelancers who would jump at the chance of having a quiet office space in a nice location from which to work a few times a week, Capitalize on this and your expenses will be instantly reduced.
Use the Cloud
Pretty much all companies need infrastructure like telephone lines and computer servers if they are to compete as effectively and efficiently as possible, but that doesn’t mean that you need to spend a fortune on such things. By using cloud systems instead of physical ones that you must house, run and maintain yourself, you can save a bundle and still have access to all of the tech you need to run a successful 21st Century business.
Cut Your Taxes
Obviously, you can’t just give yourself a tax cut – tax has to be paid, and it has to be paid correctly – but you might just be paying more in taxes that you really need to, and a good CPA firm will be able to identify areas where you could save. Sure, you’ll have to find the money to pay them, but because they are experts at what they do, there is a very high chance that, once they’ve been able to look at your books, they’ll identify savings far in excess of their fees.
Audit Your Subscriptions
The majority of small businesses subscribe to a number of software packages and industry journals, which they rarely if ever use. Unfortunately, it is so easy to forget about all those little subscriptions, but they don’t forget about you and the money continues to drain from your account month after month. So, if your business has various subscriptions on the go, now might be a good time to start auditing their usefulness and unsubscribing from any that do not offer you true value.
Use a Reward Credit Card
If you pay all of your business expenses with a rewards-based credit card, you can make your business expenses work for you by obtaining cashback or air miles on every purchase you make. This can be funneled back into the business as and when needed.
Do you run a business? How do you keep your expenses low and your profits high?