Cutting back on unnecessary expenses to increase your business profits

In an uncertain economy, we need to maintain business profits. Cutting expenses is one way to do that. Here are some tips on how you can save unnecessary expenses in your business to increase profits.

Reduce your supply expenses

If you have regular suppliers or vendors for your business, contact them to let them know you are shopping around for better pricing. Please allow them to come back with a proposal for you. If they don’t, find alternative options.

Cut production costs in your business

We often throw away, recycle or give away items in the business that can make you some money. Instead of paying a company to collect and recycle your leftover paper, cardboard or metal, instead sell it to companies that need it.

Consider the space you are using for your admin team. Is it all necessary? Is there a chance you can sub-let some space or downsize to save some rental money?

Track and optimise your operations. Set performance KPI’s and assess where you can save.

Reduce your financial spend

Make insurance comparisons, security company assessments, and even look to your copy machine rentals to see where you can chop. Consolidating with one company can often get a better deal for your business. Try to reduce debt as much as possible to avoid excess spending on credit cards, loans, and rentals.

Use virtual technology

Cutting on travel time and face-to-face meetings can reduce costs overall—no need for boardrooms, lunches, or fuel expenses.

Documents can be saved in the cloud, google drive, and even shared folders to reduce storage space, servers, server maintenance, and IT.

Limit your product offerings

If you focus on the products and services that make you money, you can be more profitable. Reduce the low margin and profit items in your business to save on operational costs.

Bizcash is here to assist with your business cash flow, save on costs and to help you grow. For more information on our Invoice Discounting or Business Loan products, or arrange for a demo on the financial dashboard, get in touch here. Follow our social media pages here for tips for small businesses.