As it gets closer to the end-of-the-year, businesses are taking a hard look at their budgets both for the year prior and the year upcoming; there is always room for budget improvement as companies constantly shift and grow. To begin revamping your budget, it’s important to first carve out the time necessary to look at your business numbers and set your financial goals for the following year. As you prepare for next year, here are 10 savvy ways to cut costs, build revenue, and protect your business as it grows.
- Marketing – Keep What Works and Chuck the Rest. Examine what in your marketing is actually bringing in your clients, building your community, making you visible and then identify what is not working. Do not be afraid to let go of the marketing avenues that are not working for your company — cut those costs.
- Explore Payroll Options. Consider whether or not you should have employees on salary vrs. hourly pay or whether you are in a position where you can hire contractors vrs. full-time employees. Getting creative with the structure of your payroll can reduce overhead while still maintaining the manpower needed for your work.
- Technology – Use It. With the number of apps and services available, there are a multitude of alternative choices for companies to utilize. You can use stamps.com instead of driving to the post office to send out mail or use free conferencing with your cell phone rather than an expensive phone system and contract. Explore your options and see where you can save costs by working with today’s technology.
- Office Space Options. There are more office space combinations than ever seen before, whether you are renting a small desk in a large office or building, a workspace in a co-op office or a virtual space while you work from home, there are many alternatives. Find the best combination for you and your lifestyle, it’s possible that you can save money on your overhead.
- Re-work the loan interest rates. Revisit your business loans, banking loans, credit loans, mortgage loans and crunch numbers to see if you can make a change that will lower your interest rates.
- Pooling Power. Create pooling power and use this to leverage a better product price for your business. First, you must contact like-minded businesses in your industry that buy from the same supplier. Then pool your resources for your combined purchasing power and decide what savings you would all like to see you in your purchasing price.. Next, tell the supplier you will all buy from one vendor for a pre-set amount of time. Offering big revenues to suppliers for a set amount of time is a win for them and provides overall savings for your business- win for you!
- Stem the Money Flow. All businesses have that one part of the day-to-day operation that could run more efficiently; when efficiency is lost, that is when your company starts to bleed money. Review the overall day-to-day operations and figure out where you are wasting money – create a new plan to handle that part of the operation efficiently and stem the money flow.
- Be realistic about your sales cycle. Most businesses experience busy boom and bust cycles throughout the year. It is important to structure your budget in a way that can cover expenses during the slow seasons in order to avoid financial stress.
- Go Green. Look at swapping out lights with LED lights to reduce electricity bills or maybe invest in solar panels. Ink and paper are expensive, so go digital by taking out file cabinets and scan them onto your computer or print less by sending emails instead of snail mail. Maybe you let employees work from home at a slightly lower rate to reduce carbon footprint. There are many ways to implement creative green power to cut your overall costs.
- Quote your Business Insurance. Even if your mid year on your policy, re-quote your business insurance. Many times you can find better pricing, re-evaluate what is and is not needed within an insurance policy and make a switch that can save you money.
Everyone likes extra money and addressing your budget with purposeful intent and creative solutions can increase your bottom line. Take some time to look through your options and remember to have fun with it!