As a small business owner you have to deal with business expenses all the time, and some are more costly than others. From paying your all of your employees to managing your day to day expenses, if you are not being proactive about it the expenses can add up quickly, affect your revenue and could lead to failure of your company.
You can start to trim any unnecessary expenses and look for ways to save. Every expense that you eliminate will lead you in the right direction of saving. In this article we will discuss the business expenses that you should look into and consider when looking at your budget.
If your business uses shipping in your operations, you can start by being selective in the shipping options. See where you can cut costs in shipping as there are different prices available depending on the weight of your item and what company you use.
You can also save by reusing boxes and packing materials you have lying around. Whenever you receive a box, save it so you can use it to send something next time. For packing materials, consider buying in bulk as the cost per unit will be lower than if you do not buy in bulk. This strategy will result in low overall costs.
Many businesses need equipment and keeping up to date with the latest equipment and technology is essential for business productivity and growth. Whether it is small or large, it can cost hundreds of dollars. You can save money by finding devices that have multiple functionalities or you can buy used equipment rather than new.
Utilities and Office Supplies
Take a look at how much you are spending on your utilities such as water, gas, internet, electricity, and basic office supplies like pens and paper. You can reduce the utility costs by “going green” and also by doing simple practices like unplugging electronics that are not in use. You can try to go paperless in your office and not only cut expenses, but all reduce office clutter.
Marketing and Advertising
Marketing and advertising can help businesses generate leads and brand recognition, but the costs can add up. Figure out a money saving strategy by focusing on what will give you a high return on investment. If you do not use social media as a marketing and advertising strategy yet, start as soon as possible. Social media is not only a highly effective way to promote your business, but it is also cheap to use and even free if you do not participate in paid advertising.
Employees and Company Benefits
Employees help your business run in an effective and efficient matter. There are many costs associated with having employees such as salaries, health insurance, training, medical leave and more. If you fail to properly invest in your team, it can lead to high employee turnover and can be very costly to your business. To avoid this, provide incentives to employees so you can retain them. It is better than recruiting a new team. The incentives do not have to cost a lot of money they can simply be things like a casual dress code or flexible schedules. For health insurance, see if you can negotiate the costs and fees with your health insurance provider.
Permits or Licensing Fees
You must have a permit or license to legally run a business. This is not typically just a one-time expense so you need to consider how often they need to be renewed and what the costs will be. Some of the things to consider when getting your license are:
- Federal industry regulations
- Physical location of the business
- Local policies that pertain to your profession
Fees of permits or licenses can add up quickly and must be renewed every year. If you do not renew them you could face additional fees or penalties.
By using automation tools for your everyday tasks you can save both time and money. Time is valuable and there are tools that can help you get things done more efficiently and effectively. Some of the tools you can use are Hootsuite for social media, or MailChimp for email marketing.
When you start to closely pay attention to your expenses, you will be able to see areas where you can make improvements. The savings you make in the beginning may not seem drastic, but every penny adds up. Do some research and see the best ways you can trim down unnecessary expenses while still growing your business.