5 Ways to Reduce Costs this Year
As businesses grow they tend to increase their staff, inventory and opt into higher priced services. Some are so sure of their new projected sales that they spend themselves right out of business.
Live beneath your means. Keep finding ways to reduce your expenses wherever possible. The problem is picking which expenses should be reduced and how to reduce them without impeding the growth of your business.
Here are 5 easy ways to reduce expenses today.
Ask for discounts
Negotiate with your suppliers or service providers for a better price. Most vendors are willing to give you a loyalty discount. If they’re hesitant, then shop around and find a better price somewhere else. At this point, you can go back to your current supplier and see if they will match the price. If not, then maybe it is time for a change. Always look online for coupons before signing up for anything. If you don’t find any then contact the vendor and ask if they have a new client sign up incentive.
Eliminate credit card interest & fees
Pay off the balance every month even if you temporarily use your LOC (line of credit). The interest rate on an LOC balance or a bank loan is lower than what you’d pay on your credit card’s unpaid balance. Also, stop paying credit card user fees. There are plenty of credit card providers and banks, who don’t charge any fees at all. President’s Choice is a great online banking option. Shop around.
Cut back on travel expenses
Teleconference services have reduced the need for face-to-face meetings. With choices like – Skype, Facetime, Google Hangouts and Messenger we can talk to people online, conduct meetings, put on live presentations and virtually interact with each other. Your time and money can be put to better use than traveling to meetings.
More and more businesses are choosing to outsource some of their non-revenue administrative tasks to virtual service providers. Instead of hiring additional onsite office staff they contract it out. So now the back-office tasks, social media content, newsletters and website management is being taken care of by professional virtual assistants. You pay for only what time you use – no down time – no office equipment – no payroll headaches.
Pool your Resources
It takes a little time and organization to do this, but considering the considerable saving involved, it’s worth it. Connect with other businesses in your industry that buy supplies from the same vendors that you do. Now, pool your total purchasing power and determine the percentage of savings you’d like to receive. Then make your presentation to all the suppliers and let them know your combined group will be purchasing these supplies from the vendor with the best offer. You could also say that you will buy exclusively from them for a set number of (3) years. This method practically guarantees you a bargain price.