10 ways to cut your business expenses this year
One of the most important strategies of a successful business is keeping expenses down. When reviewing expenses, business owners often focus the large numbers and overlook the smaller costs that quickly add up. We always encourage our clients to look at their expenses as a whole to reduce operating costs.
A good place to start is to focus on these 10 areas to save money in your business:
1. Review your staff structure
How many of your staff are full time? Can their workload be completed on a part time structure? Cutting back hours by only one or two days per week can produce large savings for your business.
For additional business advice, visit www.businesscoachingsa.com.au and www.sabusinesscoaching.com.au.
For advice on structuring your staff, visit www.stillwellmanagement.com.au, www.mpsgroup.com.au and www.daviesstewart.com.au.
2. Create capital in your equipment
Your business can improve profit by investing in the right equipment. Look at your equipment as a way to reduce your outlay, create cash flow and generate tax deductions. For example, you might want to sell it and then lease it back. For similar tips on increasing capital in your business, visit www.dynamicbusiness.com.au.
3. Distinguish good costs from bad costs
Making the distinction between good and bad costs is critical. Having a clear vision of your goals over the next two years will help your business grow. If you’re unsure whether to invest in a new sales person, an advertising campaign or revising your graphics, talk to marketing specialists. You can cut your marketing budget simply by being smarter about your marketing. For more information on where to invest your marketing dollars, talk to local communication agencies www.fabads.com.au, www.jarvismarketing.com.au and www.leveragepr.com.au.
4. Increase staff work efficiency
Are your employees using their time to maximum efficiency? Business owners need to be on top of staff performance. One of the best ways to boost staff morale and maximise efficiency is arranging regular meetups and social events out of work. For more information on hiring a room for your staff event, visit www.alistguide.com.au.
5. Invest in staff training and development
By investing in employee development you will demonstrate your commitment to your staff, which will increase engagement, improve retention and apply new skills to your business. Regular training and development helps employees grow and develop their careers while giving your business a competitive advantage through a highly skilled team. For more information on training and development programs available, visit www.stillwellmanagement.com.au and www.aimsa.com.au.
6. Reducing your rent
Before you renew your lease, take the time to research prices charged for similar rental properties in the area. For more information on finding the right space for your business, talk to www.timmsrealestate.com.au, www.walterirvine.com.au and www.realteam.com.au.
7. Review all operational expenditure
Business owners should be reviewing operational expenditure on a frequent basis to be as efficient as possible. Technology is one of the key areas to audit expenditure. Have a technician audit your printers, scanners, e-payment systems and phones. For more information on reviewing in-house technology, visit www.geeksoncall.com.au and www.adelaideit.com.au.
8. Keep personal finance separate from business finance
Your personal finances should be separate from your business finances. These often become interchanged making it difficult to separate a personal cost from a business cost. For more information on what a business cost is, talk more to us at www.michaelbowman.com.au.
9. Talk to a lawyer
Chances are at some point your business will require a lawyer. Many business owners assume that lawyers are only necessary in times of dispute, but engaging a lawyer regularly can save you a lot of time and money. Use a lawyer to look over and negotiate business contracts, including sale and purchase agreements, leases, supply agreements and other similar documentation. A lawyer will also ensure your business is legally compliant and protect your business interests. For more information on legal services, visit www.cowellclarke.com.au and www.dewarlegal.com.au.
10. Arranging business insurance
Do you have business insurance? There is a wide range of insurance options to safeguard your business, including public liability insurance, small business insurance, trade insurance, professional indemnity insurance, commercial motor insurance, fleet motor insurance, legal liability insurance, workers compensation insurance and travel insurance.