3 Simple Ways to Reduce Your Small Business Expenses

Many small businesses have steady income, but there are always a few lean months. During tough times, it’s wise to cut back on spending wherever you can, because before you know it, you’re spending cash faster than you’re making it. And that’s a scary situation.

Before you start pinching pennies, write down your expenses. Are they all necessary? Which costs benefit your business and boost your customers’ satisfaction? Take the time to prioritize your expenses. Then you’ll know which ones to cut, trim, or preserve to improve the success and ensure the livelihood of your business.

Here are three tried-and-true ways to reduce your expenses:

1. Search For Discounts

Asking for a business discount can be uncomfortable, but it’s always worth it! Take the initiative to ask for a price cut, especially if you’re a regular customer, buy products in bulk, or are interested in purchasing a high-priced item. Your vendors might give you wholesale pricing or help you out in some other way.  You never know until you try.

Before purchasing products online or visiting a storefront, go online and look for discount coupons. More often than not, you’ll find one that works. A penny saved is a penny earned, right?

2. Go Paperless & Inkless

Let’s face it: paper and ink are becoming outdated in our digital age. Nowadays, during checkout, businesses ask if you want your receipt emailed or printed! Times are changing, and more resources are available online – which makes cutting office expenses a lot easier to do.

Most small businesses can’t cut office supplies completely, but they can significantly reduce the amount of paper and ink they consume. Rather than printing time charts, schedules, or customer records, consider using an online data storage system! It’s safer, and your customers will appreciate the added security. Just think, without paper – you can cut many office supplies from your budget.

3. Eliminate Finance Charges

This one might seem like a no-brainer, but businesses throw a lot of money away on credit card, membership, and interest fees. Set a few minutes aside to review your bills and services. Ask yourself if the services are truly essential. Are there other services that offer lower rates?

Taking the time to review your expenses each quarter will help you realistically evaluate what’s necessary and what’s not. Once you review your expenses, you’ll know where your money’s going and how far it’s taking you. Do the right thing for your business and start cutting expenses today!

Shawn Pfunder
<div> Shawn's been working in communications for more than 20 years. During the last 8 years at Go Daddy, he's built dozens of professional websites, managed multiple writing teams, created training and education programs, and acted as an advocate for customer service throughout the company.</div> <div> <a href="http://www.GoDaddy.com" target="_blank">godaddy.com</a>|<a href="https://www.facebook.com/GoDaddy" target="_blank"> Facebook</a> | <a href="https://twitter.com/pfunder" target="_blank">@Pfunde</a><a href="https://twitter.com/pfunder">r</a>| <a href="/author/shawn-pfunder/all-posts" target="_blank">More from Shawn</a>             </div>


Awesome post! great insights

Awesome post! great insights here. Iwould like to add another point to it, we can further cut costs by choosing few employees willing to work from home, this will help in cutting cost of travelling allowances, furniture costs. Infact we can save a lot more with this idea.

Thanks for sharing ideas

Thanks for sharing ideas about how a small business can reduce the expenses, but in my opinion we have to outsource some services like contractor management services, they not only reduce burden or management, but also helpful to save thousands of dollars.

References : http://www.ayers.com.au/solutions/contractor/contractor-management

Revenue management is the key

Revenue management is the key feature or system of any organization. In fact, it is the base of the firm. Therefore, to keep the expenses in sync with the services, some aspects need to be acknowledged and the foremost is to analyze the expenses thoroughly. Though, the contract management is also one of the applicable options to reduce costs and maximize profitability. Actually, reduction of the financial risk is its key part. You can also renegotiate your all contracts annually to maintain your revenue.

Even if you can't eliminate

Even if you can't eliminate all of your finance charges, there are ways to organize your payments to make sure you aren't paying through the nose in fees. For example, prioritize your credit card payments by APR and by date. Make sure the cards with the highest APR get paid first, so that if there is a chance you have to make a payment lower than the statement balance on a lower fee card, you can save some money on the finance charge.

Regarding item #2,keeping

Regarding item #2,keeping records and receipts in electronic format makes sense but it is critical to have online/off site backup that is ongoing in real time if you do. The risk of losing your entire business is all too real and can happen when you least expect it. I've found Carbonite to be the most cost effective, thorough, and full featured program available. It's also the easiest to use and most reliable, and their customer support is outstanding. A few months ago I learned just how valuable Carbonite really is when a vindictive roommate downloaded a vicious worm virus on my network server before vacating the premises. By the time I discovered it, three PCs were damaged beyond repair and even the boot sectors were completely corrupted, rendering all three machines completely inoperable. Everything I'd done for the last 5 years, including countless programs and ebooks I'd purchased, games and downloads, photos and videos, work, school, and creative endeavors, medical, tax, business, and personal records, all gone without hope of recovery - but for the miracle of Carbonite. Always on duty, always up to date, and always accessible on any device. Best $100 I've ever spent. I have it on every device I own now and will make sure that subscription is renewed every year even if it means I don't eat!

Post new comment

The content of this field is kept private and will not be shown publicly.
This question ensures you are a human visitor to prevent automated spam submissions.
Enter the characters shown in the image.