How To Cut Down On Business Expenses
These last few years have been difficult for businesses. A lot of businesses are looking to cut down on expenses due to the energy crisis and steep inflation rates. There’s no better time to start saving than now, especially if you are a startup business. Here are some tips to help you cut down on business expenses.
Consider A Coworking Space Or Work From Home
Virtual workspaces are the new normal. You can reduce some costs by switching to a coworking space or introducing work-from-home options where possible. Neither requires you to have a lease and you save on office expenses such as Wifi and power costs.
Learn more about our Business Incubation Center’s services such as virtual offices, private offices, shared workspaces and more at https://cbponline.org/incubator/ If you are working from home, be sure that you are only claiming clearly defined home-based deductions; the IRS counts them as a red flag to conduct deeper audits.
Take Advantage Of “Budget Plans” Offered By Utility Companies
If you have paid utility bills in the past, you know about the surges that can occur. Perhaps your electric bill is hundreds of dollars more in the summer due to air conditioning, or your winter gas bill jumps due to heating. Look into the companies’ budget plans. After you’ve been a customer for a year, the company will look at your bills and come up with an average amount that you pay each month. At the end of the year you check actual charges against the budget and make adjustments. While this technically does not “save” you money, it does make budgeting and paying your bills easier.
Invest In Used Office Equipment
Buy refurbished items. No need to buy your staff brand new desks or purchase a new printer for the office. Invest in lightly used computers, phones, or even office equipment. Some companies such as Apple have plenty of refurbished office tech gadgets that are checked by experts before being resold.
Outsource Freelancers Or Virtual Workers
No money for new staff? Hiring freelancers or virtual workers on a temporary or project basis can help you to get your tasks done without breaking your budget. It is way more affordable to hire staff for these tasks and then hire full-time workers in the future if needed.
Remember, it is important to clearly understand the difference between an employee and a contractor. Review the IRS’s page https://www.irs.gov/businesses/small-businesses-self-employed/independent-contractor-self-employed-or-employee
Smart Marketing
Marketing does not have to cost a fortune. Hire marketing experts can be expensive so it pays to learn marketing yourself or train your staff with the capacity to handle marketing activities. There are great ways to grow your skills such as social media management. Most importantly know your target market and have a marketing strategy that includes evaluating your efforts!
Check out the SBA’s “Market Research and Competitive Analysis” page https://www.sba.gov/business-guide/plan-your-business/market-research-competitive-analysis
If you need help with your marketing or business tips, the Women’s Business Center can help. We run workshops and learning programs across the country for entrepreneurs and start-up businesses. Our team can also help you with funding for your business where possible.
Contact our team for more info on how to cut down on business expenses!
