As a business owner, there is nothing more concerning that your balance sheet. If your accountant is ringing you at all hours and money is on your mind, it’s time to make a change. There are changes and cuts to be made in every business. The trick is to know where to look. Today we’re going to help you find seven places to cut back costs. And you can do them all right now. Let’s take a look.
1. Reduce energy use – Your entire business will drain a lot of energy. When it comes to electricity, heating and water, small changes can make a huge difference. Try simple things like turning the thermostat down a little. Make sure employees are turning off appliances and watching their energy use. You’ll save money faster than you think.
2. Change energy supplier – While you’re at it, why not change your entire supplier? Many businesses stay loyal to their energy companies, but this isn’t always the best tactic. Shop around and see if there’s a better deal out there for you. Get the most efficient energy for your business.
3. Telecommute – In the modern world, your workers don’t need to be in the office everyday. They are more than capable of getting their work done from home. In some cases they’ll actually be more efficient without the distractions of the office. Telecommuting can also cut down your travel costs. Try conducting meetings over Skype or conference call instead.
4. Pool supplies – We don’t recommend collaborating with your competitors in every aspect. However, pooling your supplies with local businesses is a great plan. Next time you place an order at statewidebearings.com.au, give the other local engineers a call. Could you take advantage of bulk buying and split the savings?
5. Negotiate everything – Don’t take everything at face value. When it comes to business, there’s almost always a deal to be struck. For every purchase or business expense, negotiate a discount or a delayed payment. The worst that can happen is they say no. Trust us, you’ll discover more discounts than you thought!
6. Inventorize – We watch so many business lose money by over stocking their inventory. As a business, you need to avoid this. Keep a strong inventory and never buy more than you need. Operate an efficient and careful inventory system and you’ll instantly cut costs. Avoid any unnecessary purchases.
7. Keep your tax down – Anyone who owns a business knows how much tax is taken from their company! It’s a lot. However, as a business, you can take advantage of many tax breaks and incentives. Speak to your accountant or local government and see what you can take advantage of. For example, there are tax breaks for businesses that embrace green technology. You could use hybrid company cars or generate your own power. You could alter your company structure to shift the balance of taxation. Look at your options here and choose the best path.
Your balance sheet doesn’t have to be a scary place. Take control of your accounts and start making small cost cuts across the business. Those small cuts will make a big difference.