6 Tips for Reducing Business Expenses

tips for reducing business expenses

If your business is being crushed under the weight of your own expenses, it’s time to make a change. Here are six ways you can lower your monthly bills and stop cringing every time you receive a bank statement.

1: Go Paperless

Paper isn’t a huge drain on your budget, but the little expenses can really add up into an unpleasant whole. Embrace technology and wireless sharing in order to eliminate your need for printers, papers, files, binders, ink cartridges, et cetera.

2: Outsource

If you already know you’re no good with web design, don’t waste your time trying to muddle through the intricacies of CSS and Java. Send the entire problem over to graphic designers and programmers. You’ll need to pay labor costs, but think of all the money you’ll save when your website doesn’t go down in heavy traffic on a random Tuesday morning. If you’re looking into developing a new product you should definitely consider outsourcing the manufacturing process. But take note, do due diligence and conduct background checks to ensure that you are partnering with a reliable company (like http://www.asianprosource.com).

3: Reduce Your APR

If you’re using a business credit card, you may be drastically overpaying your annual percentage rates. Call your provider to see if you can’t negotiate a lower APR. Sometimes, if you threaten to visit their competitors, they’ll give you new-customer discounts and introductory rates to keep you from taking your business elsewhere.

4: Stop Leasing

Leased equipment is a perpetual drain on your income. If you need something long enough to sign a contract for it, go ahead and buy it. You can always re-sell it later as need demands, or you may choose to keep it and write it off come tax season.

5: Hire A Professional Management Company

These businesses will take a magnifying glass to your expenses and help you consolidate your debt. They may also be able to suggest cost-cutting initiatives that you overlooked or didn’t notice at all.

6: Negotiate With Your Suppliers

You can’t do anything without your suppliers, but that doesn’t mean they hold all the power. Call them and make it known that you’re shopping around their competitors for lower prices or more attractive service packages. They might “suddenly” find a great coupon or discount that they can exclusively offer your company.

Takeaway

When it comes to business expenses, nothing is set in stone. Things can always be moved, modified, pared down or just changed in general. If you’re looking to relieve some of the pressure on your annual budget, follow these tips for a brighter future and a more affordable business.

Damian Davila

Ideas and concepts from Damian Davila, Ecuatoriano thriving in Hawaii. Pro marketer and blogger. Find him at @idaconcpts on Twitter.