Business Budgeting: 5 Ways to Stop Wasting Money
Every business has to keep a lid on their costs if they are going to prosper and deliver a good bottom line performance at the end of each year.
There are numerous ways to target cost savings and improve your financial efficiency. Here is a look at 5 ways where your business could trim its overheads by cutting out financial waste.
Ego or necessity?
Take a look around your office or store and see whether you really need some of the more expensive furniture and accessories.
Analyse your bills
Always check your regular monthly bills and check to see if you might be able to find a cheaper supplier elsewhere.
Infinite Energy sells business electricity plans and companies like this are often keen to find you the best possible deal and find ways to save money on your bills. It is all too easy to get into a habit and just pay out each month to the same suppliers for your goods and services, without checking whether you might be able to save money by going elsewhere.
Aim to check tariffs and prices on a regular basis and always shop around when a deal comes up for renewal. You will often find your existing supplier might even offer you a better deal if they think you might go elsewhere.
Some business owners refuse to consider outsourcing because they think it will be too expensive and they prefer to try and do everything themselves.
Identify your businesses strengths and weaknesses and consider outsourcing jobs that you can’t do very efficiently. If you take the view that some tasks could be delegated and others should be retained in-house, you may well find that it is more cost-effective to outsource in the long run.
A paperless office is still very much a dream for many business owners and we all know how it feels to wade your way through a tide of paperwork.
Take a look at what you currently user your printer for and decide where you might be able to reduce your levels of printing and save money on paper and ink. Sending invoices and statements by email and making a conscious effort to reduce the amount of printing, will soon add up to some very worthwhile savings.
A lot of businesses throw money at various marketing initiatives without actually measuring what sort of financial return they are getting for their money.
Always try to assess whether you are getting value for money by tracking and analysing results and keep a note of what works and what doesn’t.
Cutting out the wasted marketing costs that don’t generate a reasonable return will help improve your financial performance. For example, have a look at the paid directories versus any unpaid directories used to promote your business, which ones are bringing results that you can track and measure? Google Analytics can help you determine which are the best sources of traffic from online directories.
Small Reductions Add Up
Never be complacent about your costs and always try to improve efficiency and reduce expenditure where you can. If you can reduce costs of 5% across four key areas of the business you will soon notice a difference when you look at the bottom line at the end of the year.
Meet Seth Annois
Seth Annois has had his own small business for several years now.
When he has some free time, he likes to give advice to new business owners, as well as long time business owners, by posting online.
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