Whether you have been in business for years or you are just getting started, money can be hard to come by. Here are 10 tips to help you cut down on business expenses and maximize your profit margin:
- Skip The Snail Mail
Save on the high cost of snail mail by communicating electronically with your customers and vendors. The seemingly small costs of paper, envelopes and stamps can add up quickly.
- Don’t Print As Often
The digital age has a lot of benefits, including a reduction in cost. It is no longer necessary to print endless stacks of paper or store large amounts of paper files. Use a scanner to keep electronic copies of your files with data backed up on an external hard drive.
- Search For Used Equipment
You don’t always have to have the latest technology. In fact, you can save hundreds of dollars by purchasing used equipment. You can even find equipment that’s only a few months old after a new version has been released. Search on sites like Ebay, Craigslist and other classified websites to find deals.
- Send Payment Earlier
Many vendors offer big discounts to customers who pay their invoices quickly. This is also a great way to build a long-lasting relationship with your vendors.
- Inventory Reduction
Another of our 10 tips to help you cut down on business expenses is to cut down on inventory. For many businesses inventory is their largest expense category. Use an inventory management system such as QuickBooks to help you find the perfect balance of inventory.
- Take A Look At Your Inventory Turnover Ratio
When looking to save money it is also a good idea to take a hard look at your inventory turnover ratio. If you are keeping inventory on hand that sits for too long it can end up costing you a tremendous amount of money.
- Take Advantage Of Lower Commercial Rent
The commercial real estate market is going through difficult times and most commercial real estate is renting at increasingly low prices. There are a large amount of vacancies with property owners who are willing to negotiate to fill their empty spaces. If your business is looking for office space for the first time or hoping to make a change now is the time to do it.
- Take Advantage Of Online Marketing
If your business isn’t currently using online marketing tools like Twitter, Facebook or Blogs you need to jump on the bandwagon. These tools are typically free to use and can help you target your customer more efficiently.
- Cut Back On Travel
Another great way to save money is to avoid making unnecessary business trips. Take full advantage of online resources such as Skype and GoToMeeting to connect with people in other locations instead of making the trip.
- Hire Interns
The last of our 10 tips to help you cut down on business expenses is to hire interns. This is a great situation for everyone. Your interns will get great experience while you enjoy the inexpensive labor. It is important to remember that interns are generally young and inexperienced so they will need a lot of training before they can begin working.