Tips to Trim Small Business Expenses
So you have succeeded in getting your small business up and running. But, how long will this venture last? With most small businesses failing within their first 18 months, it’s necessary to know some vital tips.
Half of the points listed below range from wise investments to mere common sense. It is important to remember that these are the same practices that successful businesses follow.
Keep Track of What Goes In and Out of Your Bank Account
This one is a no brainer. All of your financial traffic should be well documented in writing so you can monitor what funds go in and out of your account. This is also a good way to prevent any overdrafts.
Most small businesses fail because the owners cannot establish a formal budget. Set up times in your schedule to go over your budget. It would be best to do this on a weekly basis.
Use Timed Thermostats and Light Switches
Workplace lighting and climate control are as vital expenses as running water. Providing these amenities for a workforce will take a toll on the environment and your wallet. Try to reduce the costs of both by programming the times these resources operate.
Commercial air conditioners and heaters come with a variety of energy saving features. Using programmable thermostats and light switches cuts down on the wattage needed to run these utilities when they’re not needed.
You can even budget your energy utilities online with an energy management solution. With an energy budgeting app, you can review your energy costs and manage contracts with energy companies.
Cut Down on Paper, Go Digital
Another inevitable expense is the endless sheets of paper needed for business documents. While it is necessary to have your deals authorized in solid writing, you could reduce the long term costs by using digital storage.
Set up a personalized e-mail account for your business with Google to send and receive messages through the office or between clients. When it comes to sensitive information regarding banking and health care, apps such as Delivered Secure offer safe transfers of such data.
Storage of documents can also be reduced with a scanner and external hard drive.
Telecommuting is the Way of the Future
Telecommuting is not only a lenient way to do business, but it is also the way of the future. Allowing an employee to telecommute frees up office space and gives them the ability to work in an environment that provides emotional control. Working from home may even provide significant tax breaks for the employer and employee.
It’s Not Cheap, It’s “Gently Used”
There is no shame in buying cheap office equipment. The shame lies in cutting that spending on shoddy materials.
Nonprofits, for example, turn to organizations like Recycles.org for gently used office furniture, laptops, copiers, and other accessories. As for everyone else, companies like Surplus Office Equipment offer pre-owned office furniture for 50 to 80% off the original factory price. With those options on the table, you just need to follow your wit.