How to Reduce Business Expenses for Small Businesses

As a small business owner, you are always looking at ways to bring in more business and increase profits.  Business expenses are sadly unavoidable and can be extremely high, but this doesn’t necessarily have to be the case and something that can be reduced substantially.  So, let’s have a look at what you can do to cut down and reduce how much you’re really spending.
 
Firstly, evaluate your staffing costs.  Are you spending a fortune to keep staff on your payroll even though you may not need the resource at all times?  You can hire professional remote staff on a contract basis, cutting your staffing costs considerably.  These professionals will cost a fraction of what you may be paying now and can work on an ad hoc basis for actual hours worked.  Some of the best professionals are out there willing to work for a reduced fee.  You will find a large amount of remote workers from all walks of life providing the skills your business needs.  Another option is to contact local colleges and employ an apprentice who will work and learn from your skills and experience whilst also studying.  This will give you the chance to mold the apprentice into hopefully a perfect member of staff as he/she develops, learning directly from you.
 
Analyse your business purchasing.  Negotiate with current suppliers and compare the market as you may well find cheaper options.  Always ask suppliers for discounts, after all you really have nothing to lose and the worse they can say is “No”.  Most suppliers will provide some form of discount so as to ensure future business.
 
Compare the cost of business insurances you may have, as staying with the same provider may not always guarantee you lower premiums, as you may well find that these continue to rise year after year – so shop around for the best deals.
 
Have a look at energy saving.  Invest in energy saving lighting and appliances, turn off heating and lights when not needed.  Energy is costly, reduce it as much as possible and your business profits will grow. Go green and reduce how much paper your business is using.  Within 24 hours of printing on paper in an office, nearly half will be discarded.  Try using the free business tools online e.g Google Docs, Microsoft Office Live Workspace, Amazon Cloud Drive, and Dropbox.  Emails are quicker and more effective than traditional post.  Most of all emails are FREE.
 
Your marketing strategy / plan need not be as expensive as previous years and really doesn’t need to break the bank.  Set up Social Media accounts for your business and this will be a very cost effective way to generate new business whilst keeping in touch with existing customers, if done properly.  The internet is a wonderful invention and your posts on these websites can reach out to millions. These accounts are easily managed and a fantastic way of expanding your business.  Reward existing and loyal customers as word of mouth is another very powerful tool by way of advertising.
 
Evaluate how much you are spending on rent.  Does your business need to be located right in the middle of the city centre? If your answer is no, then moving the business further afield could save you hundreds of pounds per month.  Alternatively, if your business is predominantly online then consider running the business from home and reduce unnecessary overheads providing you with the opportunity of channelling  finances elsewhere.
 
By addressing the above points, your business expenses can be significantly reduced allowing you vital time to focus your efforts and extra finance on growing your business and increasing profits.