Do you want to learn how to reduce expenses in your business? Feel like you never have any money leftover at the end of the month? Check out these 6 tips for cutting business expenses! These are proven strategies that will cut your expenses, and help you to create a more profitable business.
1. AVOID DEBT
Going into debt, especially credit card debt, should be avoided and treated as a last resort. It may be appealing to take out a loan or buy things with credit when you need some extra cash, but it will ultimately come back to haunt you. It is far better to try some of these other tips before you even think about going into debt.
2. REVIEW DUES AND SUBSCRIPTIONS
Ever gotten a free trial for something and then forgot to cancel it? I remember trying out FUBO TV for NFL season and paying $65—and not watching a single game that month! Go through the subscriptions you have and evaluate which ones you actually need to operate your business on. Chances are you’ll see many you don’t need or didn’t even know you had. Cancel them!
The first step for doing this is creating finances organized enough that you can actually find all these subscriptions. Many fly under the radar because you are not categorizing your expenses. We can help you get your finances in order, and evaluate and cut down on your subscriptions as well as other expenses.
3. REISSUE CARDS
One valuable strategy is to call your credit card companies and bank and reissue cards with new numbers. Since your other cards will be deactivated, your billing information for all vendors will need to be updated. This may seem inconvenient at first, but it will enable you to look at each vendor you have and really evaluate which are low or non-benefit. Our next tip will help you to deal with the vendors you still have to keep after doing this.
4. NEGOTIATE
Many are afraid to negotiate services and pricing with vendors, and thus miss out on opportunities to cut down expenses. When you go to update your billing information with your vendors, talk with them to see if there are any adjustments to your service to make it more affordable for you. Renegotiate pricing, timing of payment, or what plan you are on. Many vendors are eager to keep you as a customer and will work with you!
5. POSTPONE PURCHASES
Ask yourself, is this something my business actually needs right now? Tap into the innovative entrepreneur you were when you first started your business find unique, inexpensive ways to do things. Figure out what you actually need to operate your business and do without the rest until you actually need it. This is not to say that you shouldn’t prepare for future expenses—that is essential. But buying things just because they would be nice to have is not a good business practice.
6. REINVENT/REPURPOSE PRODUCTS & SERVICES
We should always be evaluating the effectiveness and productivity of our services, but often don’t do so until we are in a crisis. This is your opportunity to take a look at your products and services and evaluate which are not bringing you enough value to be worth continuing. Or, if they are low value but still something you want to do, you can think of ways to repurpose or reinvent so it brings you more value.
We are Certified Profit First Professionals, masters at helping you implement a cash flow system that cuts down expenses while maximizing profits! We can help you get started on cutting down expenses, and start growing your profits today.
Download PDF worksheet here.
