One important factor in running any successful business of any size is to keep control of the money flowing out of the door. This is particularly true for small businesses with little help from investors. In today’s economy, small business owners know first hand the importance of cutting costs within their business to ensure growth of the company. The goal is to stretch every dollar as far as possible to keep the bottom line as high as possible.
Below are some suggestions to help you cut down on business expenses and increase the bottom line.
Monitor usage of office supplies.
This is a great way to quickly and easily cut costs. Purchasing office supplies can often be major expense for any business, even a small home business. Thousands of dollars can fly right out the window when office supplies are misused. Simply adjusting how you use and buy these supplies can save you a considerable amount of money. Before you buy supplies such as pens and paper, double check to make sure you are out. In addition, put the supplies in a locked room so employees are not tempted to grab things they may not really need.
Don’t Just Buy Individual Items
You can save money by purchasing things in bulk. You might not think that buying more can save you more, but with the right approach you can pocket significant savings. Over time, smaller purchases can start to add up very quickly. If there are items you business uses a lot of, research where to get the cheapest per item cost, and buy these items in bulk to save money. For example, instead of buying paper in 500 sheet packs, consider buying a case of 5,000 sheets.
Buy used or reconditioned.
Having the latest and greatest equipment is nice, but not always necessary. You can function just as well by purchasing used equipment, furniture, tools and other business related items. Buying used items for your office can help you stay within your budget. You can still have a professional image and keep your budget in check when buying used furniture. Start by looking at your local want ads, business closeouts, and auctions. Save your cash for when you really need it. You can always buy new equipment and furniture later.
Check Your Utilities
There is no way you can run a business without utilities such as electricity, cable, and internet. However, there are many ways you can save money on your utilities buy doing a few simple things. Do some research and see if you can choose your provider. You can also request an energy audit and off-peak usage discount from your utility company. The energy audit is free, and they can give you tips on how to conserve energy and reduce your bill. Get a printout of your energy consumption and see if you can get a discount when your peak usage coincides with their low-point usage.
Another way you can save money on your utilities is to turn down the heat during the winter season. According to the Alliance to Save Energy, for every degree you lower your office temperature during the heating season you can save 5% on your bill. In addition, make sure the lights are out when no one is in the office.
Use Virtual PBX
Last but not least, simplify your life and save money by using Virtual PBX. Telecom costs are a major expense in every business. But you don’t have to pay a lot of money for great service. By using a VoIP phone and Virtual PBX service to make and receive phone calls, you can stretch every dollar by getting rid of your landline carrier. By switching to Virtual PBX you can save 40-80% in traditional phone system and landline costs – a significant relief to your pocketbook! Virtual PBX provides business communication that is affordable, easy and accessible from anywhere with low monthly fees and no contracts or setup costs.