8 Ways to Lower Your Monthly Business Expenses
Even the most successful businesses inevitably face a cash crisis or two during their lifetime during which paying bills, giving employees wages, managing operating costs, etc., becomes a nightmare. Here’s how to avoid such adverse events through cost-cutting strategies.
We’re not talking about laying off employees or cutting expenses from an already tight budget. We’re talking about practical ways like the following to save your business a substantial sum of money each month.
Make friends with technology
Is the document submission process taking too long? Is accounting eating up your team’s valuable time? Use the technology! Many companies feel that investing in such products is a waste of money, but very few realize that time is money. Using products and services saves time and minimizes cases of manual error, making work easier and therefore giving more room for creativity.
try before you buy
All experienced buyers have a mantra; “One needs to shop around before buying.” Likewise, companies shouldn’t just jump on one product and buy it for the whole team either. Most products offer free trials or discount offers for the first month, allowing your team to try it out and then buy it. In case the tool does not offer free trials, buy it for one person before buying it for the whole team. Be sure to compare the different products available in the market, consider their prices, read peer reviews, etc. before taking a decision.
Buy in bulk
Buying in bulk is a money-saving principle used by businesses, large and small. Whether it’s the owner of the retail store across the street or the designers who buy fabrics in bulk to make a profit, it’s always cheaper to buy in bulk. Shop for essentials like office supplies like paper, printer cartridges, etc. or products such as tissues, coffee, etc. wholesale. You may be able to save thousands this way.
Track every little expense
Keep track of all your miscellaneous expenses or purchase tools to track all kinds of expenses, no matter how small or insignificant they seem. Small expenses often add up and create bottlenecks when claiming taxes. The best way to keep track of these expenses is to save all receipts and review credit card payments at the end of the month. There are many apps and service products that can help with this.
Review expenses every quarter
Did you buy a SaaS tool last quarter? Don’t forget to stop the subscription once you don’t need it anymore! If you forget, you’ll find that your business is overwhelmed by services you never use and that simply drag down your bottom line.
Find creative alternatives to traditional vendors
All businesses require some services, regardless of their size. If you are looking for HR and recruitment services, don’t just rely on the conventional options but explore and then select the agency or services based on your requirements.
Apply credit card rewards points to gift card purchases
Use your credit card rewards points to purchase gift cards to minimize business expenses, such as employee gifts, office supplies or travel. You can save thousands with these points.
Renegotiate your payment terms and deadlines with clients
If yours is a B2B Business and your customers ask for payment terms of 30-90 days, offer them a discount on their next purchase in exchange for timely payment. Alternatively, you could also give a discount on current invoices in exchange for early payment which can boost your business growth and maintain healthy cash flow through invoice discounting platforms.