How To Reduce The Costs Of Your Biggest Business Expenses

A successful business will earn you enough money to cover your business expenses. But if your profits take a dip, and if you are struggling to make ends meet, then you need to find a way to reduce some or all of your business costs. You will continue to struggle financially if you don’t, and that might, unfortunately, signal the closure of your business. This sucks, we know!

Still, we have some suggestions in this article that might be useful to you.

No matter how well your business is doing; whether it’s in the throes of success or the depths of financial despair, the following tips will serve you well in both the short and long-term.

Here are the ways you can reduce the costs of two of your biggest business expenses.

#1: Office space

Not only do you need to pay the lease on your office property, but you also have to manage the overheads that come with it, including insurance and utility costs. These can be expensive.

To make savings, you might want to downsize if you don’t need the space afforded to you by your current property. Search commercial properties and find something better suited to your needs and price range. Alternatively, talk to your landlord. Especially when your lease is about to expire, you might be able to negotiate better lease terms, be that a lower rent, or by asking him/her to include your regular utilities within your monthly cost.

Of course, if you don’t need to be based in commercial properties to run your business, you might also want to consider working from home or going mobile. Many people work from a home or a car office, and some use their local libraries and cafés as places to work. This wouldn’t work for everybody, but consider your business type, and consider alternatives if moving out of a commercial office would work for you.

Then shop around on your utility and insurance costs. You don’t need to stick with the same company if you can find a better deal elsewhere, so use a price comparison service to get a cheaper offer.

#2: Marketing costs

When it comes to your budget, you likely portion a good deal of it into your marketing. It’s a no-brainer; you do need people to hear about your business, after all. However, you don’t need to spend a fortune on a huge marketing campaign, especially if your business is already struggling.

For starters, you can use social media. This is an inexpensive way to get word out about your business, so use Facebook, Twitter, etc. to send out information about your business. Encourage your followers to do the same. You might also use these other social media marketing ideas, which cover strategies for most social networking platforms available today.

Another way to market your business is to advertise it on free websites and business directories. These include Google My Business, Thompson Local, and Freeindex. If you know other business owners, it’s always worth asking them to give you a shout out on their websites too. And there are loads of business review sites out there, including Yelp and Glassdoor, so encourage your customers and employees to post a review about your business online.

Finally

We have covered two of what we imagine to be your biggest business expenses, so use our suggestions if relevant. Then look at ways to cut some of your other expenses. There are workarounds for nearly everything, so commit to research and make any savings you can.

Let us know your suggestions too. It’s good to work together, so please share your money-saving ideas with us.

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