Small business owners know that every dollar is important. Those making concerted efforts to reduce business expenses and streamline their operations are more likely to enjoy long-term success than those who don’t carefully watch their bottom lines.
If you would like to build a stronger business for the long haul, consider deploying these six straightforward strategies to reduce your business expenses.
1. Right-Size Your Space
First, consider your present office space. Is it the correct size for your organization’s needs? Is it expensive by virtue of its location or amenities?
Next, consider the prospect of moving to a smaller, less centrally located, or less amenity-rich office space. Would the associated cost savings have any downsides that you have failed to consider? Would relocating meaningfully affect your business’s operations or cause customers to look elsewhere?
If the answer to these questions is “no,” then relocating to a lower-cost space may be in your company’s best interests.
2. Take Care of Your Electronics
The cost of replacing computers and office equipment is high. Generally, the cost of maintaining existing equipment is lower. Therefore, it may be in your firm’s best interests to take judicious steps to keep your old computer hardware running longer. When replacements do become necessary, look for ways to reduce the cost of those purchases, as well.
3. Speak With a Business Accountant
If you have yet to do so, consult a business accountant for insight into your business’s unique financial situation. An experienced accountant may offer cost-cutting advice that you have yet to consider.
4. Use Experienced Independent Contractors, Not Employees, Wherever Possible
Although it is important for any business to staff for volume and provide excellent customer and client service, it is increasingly common for cost-conscious businesses to rely on the labor of independent contractors rather than full-time employees.
If you have yet to do so, familiarize yourself with the distinction between independent contractors and employees, as well as the advantages and downsides to using each. The costs of retaining independent contractors is generally lower than hiring full-time employees, but the difference turns on situation-specific variables best addressed in consultation with your accounting and human resources teams.
5. Look for Opportunities to Reduce Overhead
Look for opportunities to reduce overhead expenses, such as utilities, office supplies, cloud software, and other ancillary costs. While it is unlikely that you can completely eliminate core overhead costs, you can probably find some excesses to trim without compromising your operations or service.
6. Deploy Proven Time Management Practices
Invest in time management practices that increase your team’s productivity and raise output without contributing to employee burnout. For ideas, review the Small Business Administration’s guide to time management for entrepreneurs.
Reducing Business Expenses Is Easier Than You Might Think
Many small business owners already employ at least one of the strategies outlined above. Perhaps you’re among them. If so, you know that reducing business expenses is easier than you might think.
If you’re not yet pursuing any of these cost-reducing strategies, let the example set by your fellow business leaders light the way forward. A leaner, more productive revenue engine is within your grasp, if you’re ready to take it.