A Penny Saved is Two Pennies Earned
Evaluating your expenses, and making appropriate cuts, can immediately make you more profitable.
When you make more sales, you increase revenues. Increasing sales usually makes you more profitable, but adding sales of $100 does not add $100 to your profits. Reducing expenses by $100 can, however, increase your profits by $100.
Take a look at the expenses you claimed as deductions on your tax return. What were the largest expenses? Could they be trimmed, without harming your ability to do business?
Are you paying for products or services you don’t need or use? Could you get a better deal on your internet service, telephone, cell phone or long distance service? Review your credit card statements. Are there charges you do not recognize? There may be recurring charges you set up months or years ago, for something you do not even use.
If you have debt, how could you pay it off sooner and save interest expense? Do you use credit cards for business expenses? Consider switching to a card with a lower rate, and/or choosing a reward card that provides miles, cash back or other bonuses.
Bank charges can add up quickly. Some banks offer free or low-cost business checking. Would it be worthwhile to change banks? Or ask if your current bank will match an offer from a competing institution.
When you need to buy equipment or supplies, compare prices. Consider maintenance costs. When replacing a printer, consider buying a laser instead of an inkjet. The initial cost of the laser may be a little more than an inkjet, but the cost of supplies will be much less. In the long run, it will be cheaper to operate the laser printer. And, it will require less time to order supplies, change cartridges, etc.
Look for opportunities to convert old inventory or equipment you no longer use to cash. Sell it off and get it out of your way.
Any time you can reduce your expenses, that reduction goes straight to your bottom line. Several small savings can add up to big profits.
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