When money is tight or you are dissatisfied with your business profitability, you might want to look at your regular expenses to find out where you can cut back and save money. From electricity costs to business insurance, there are several regular expenses you can check and compare, so you can have more money to invest in growing your company. Find five tips on how to save money below.
The first, and biggest regular expense you need to look at is your business premises rent. If your office doesn’t serve your needs any more, or you are paying too much, you might want to look elsewhere. Search for offices for rent in your neighborhood, and compare the sizes, additional costs, and extra services offered. If you are currently renting parking space, in addition to your office, you might save money long term by moving to an office with allocated parking.
Your taxation structure might also be working against you. Check whether or not you can save money by investing in new technology, or changing your incorporation form. You will need to talk to a business tax advisor or a CPA to find the right incorporation and taxation method for your business.
When you run a business, you will need to spend money on protecting your assets. From business liability insurance to buildings and contents cover, there are several trade related covers you can take out to protect your reputation and financial stability. You might want to talk to an insurance broker, or use price comparison sites to get the right price. You can save thousands of dollars a year if you change your insurance covers.
4.Contractor and Employee Fees
If you have contractors or employees, you will have to pay them regularly. Paying your staff to sit around the office when there are no jobs going is not the most effective way of running your company. You can offer them flexible working hours, or rent them out for other companies. The same applies to your contractors. You should introduce project-based compensation to avoid paying companies during quiet business periods.
5.Heating and Electricity
You can increase your reputation and have more money left after paying your bills of you invest in heating and electricity upgrades. Improving your business efficiency is a good way of cutting costs and becoming more responsible. Compare suppliers’ prices and switch if you can save money. Look for government funding options for investing in green energy solutions, such as solar panels or energy efficient heating.
If you feel like your business running costs are spiraling out of control, you might want to look at your regular expenses closer. Get an energy audit, and compare rent costs in your area. Ask a CPA to look at your taxation and incorporation documents, to find a more effective way of investing money back in your business. Keep your contractors and employees happy and busy by offering flexible working and project-based payments. This way, you will have more money left in your pocket to spend on expanding your business.