Money troubles are like seasonal bugs; well all get them, and they’re no fun no matter when they happen. Thankfully, you can take care of your cash-strapped business without making drastic changes to your routine.
Cut costs and save for a rainy day by incorporating these tips into your business budget:
1. Eliminate Impulse Spending
Sometimes unexpected bills and expenses come up. If your point of service or HVAC system breaks, you won’t have much time to prepare before you have to replace them.
But, you can still keep more in the company bank account by reducing any unnecessary or discretionary spending.
If your employees have expense accounts or autonomous purchasing privileges, consider putting that on hold. It’s much easier to track spending with fewer entry points, so stick to the basics whenever possible.
Impulse buying isn’t ALWAYS bad, but it’ll surely keep you from reaching your business goals.
2. Research, Research, Research
Bustling businesses move quickly, and it can be tempting to order what you need when you need it. More likely than not, the cost of convenience is going to be high.
Before making company purchases, extensively research all possible products and retailers before placing your order.
You could save hundreds of dollars each month by choosing the most affordable options.
It’s important to stay on top of industry and economic trends, so conduct a full audit of all of your vendors at least once each quarter. You never know where you can find a better deal.
3. Get Rid of Extra Equipment
Having unnecessary equipment running in your office is a quick way to accrue unnecessary expenses.
Regardless of your industry, there is likely some spare parts, machines, or unusable supplies that are taking up space in your office. This can increase storage and operational costs, while also making it difficult to determine when an upgrade is due.
Throughout the day, take note of everything that you do not use at least once. If you have equipment that is not central to your business or job function, consider selling or recycling it.
Many offices have old junk lying around, including:
- Printers
- Fax Machines
- Computers
- Filing Materials
- Desktop Tech
You’ll save space and money, while also giving your office a modern boost.
4. Downsize
Operating out of a micro-office environment is an easy way to cut costs, even for large-scale businesses.
The expansion of the remote workforce, as well as the advent of mobile technology, makes downsizing easier than ever before. Plus, open many companies opt for open floor plans that make the most out of a limited amount of space.
Consider which employees can work remotely, and which must have a physical office location. Once you have a solid idea of how many desks you’ll need, research potential replacements that fit your price point and volume needs.
5. Consolidate Debt
Many businesses seek third-party financing to make ends meet, but that often comes with high interest rates.
If you have multiple lines of credit and are having a hard time keeping up with payments, debt consolidation is a quick way to get ahead.
There are a variety of different ways to consolidate debt, such as applying for an auto title loan or home equity line of credit. As long as your new interest rate is lower than what you previously were paying, you’ll come out ahead.