For a business to be successful, it must earn a profit. To earn a profit, the revenue earned must be greater than the expenses incurred.
With that being said, business management should constantly be focused on how to increase revenue, and how to reduce business expenses. If a business is not able to earn a profit, then layoffs may occur, while the business model is re-examined.
Consider these tips to reduce business expenses:
- Evaluate moving to a flexible employee work day. If you reduce the lunch break and allow the employees to go home 30 minutes earlier, you can reduce costs for hourly employees. If an employee finishes a project early, allow them to go home rather than sit at work unproductive.
- Buy office supplies from bulk wholesalers. Buying in bulk can save office bucks and will last your business much longer. This will also reduce trips to local supply stores if this is how you normally buy office supplies. Also, be sure to ask for discounts for small business owners.
- Evaluate your business phone plan. If your company already pays for broadband internet, then it is very possible to get a cheaper telephone service plan that includes long-distance and/or international calls for a better rate than with a local phone service provider.
- Cross-train your employees. If you cross-train your employees, you increase their knowledge base and value to the company. Rather than relying on a temp service to fill unforeseeable events, your current staff can crossover temporarily to bridge the gap when an employee cannot come in to work.
- Start an internship program. Internship programs are a win-win because businesses get employees that cost less, and interns get critical experience in their field.
- Hire an Accountant or Bookkeeper. If you don’t already have an accountant or bookkeeper, you really should consider finding one. Accountants are up-to-date on tax laws for small businesses, and can also perform bank reconciliations without trouble. If you find balancing the checkbook a daunting task, you really should consider having a professional keep track of your expenses.
- Eliminate paper waste Instead of handing out employee manuals and instructions, send out these in .pdf form. Desks filled with paper waste and clutter actually hurt productivity. Eliminate the cost of paper and ink by saving guides, manuals, and instructions straight to .pdf and e-mailing them to employees.
Keep in mind that the above list is not exhaustive. There are many other ways to cut business expenses. Each business varies, and management must decide what can be cut without hurting employee morale and the productivity that results from happy workers.
Consider doing a poll, asking employees “What would you miss the least?” and “What would you like to see?” in the work environment. There may be things that can be replaced with a cheaper, yet more pleasing alternative, that might appease the work force, and save your business money.
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This article is for informational purposes only and it is not intended to provide you with any personalized financial, marketing, accounting or tax advice. Neither Moneris Solutions Corporation (Moneris) nor any of its affiliates shall be liable for any direct, indirect, incidental, consequential or punitive damages arising out of use of any of the information contained in this article. Neither Moneris nor any of its affiliates warrant or make any representation regarding the use or the results of the use of the information, content and materials contained in this article in terms of their correctness, accuracy, reliability or otherwise.
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Moneris processes more than 3 billion credit and debit card transactions a year, for over 350,000 merchant locations across North America. We have over 1,300 dedicated employees who understand transaction processing and know how to make it work for you.Follow on Twitter More Content by Moneris