Being a business owner is tough. There never seems to be enough time or money – especially money – to do everything you want to do. While your product team is busy dreaming up new ways to bring in revenue, you’re taking a look at your expenses and trying to decide where to cut business costs. You don’t want to get rid of anything that will damage the great relationship you have with your customers, but something’s gotta give. Here are some tips to help you cut business costs the right way.
Rethink Your Location
While this sounds incredibly drastic, it’s worth thinking about right from the start. If you’re shelling out thousands of dollars every month in rent for that “prime real estate” you were promised, consider if it’s actually worth it. Do you get the kind of foot traffic your business needs? Is the location easy to find and easy to park near? Would you be able to find all these things in a lower priced location that’s still convenient for your current customer base? While moving a large retail business with lots of inventory and special equipment can be a major headache, moving a smaller consulting, contracting, or other services-based business is simpler and could be just what you need to carve out a little bit extra in your budget. You might not need an office at all – consider whether you could relocate to your home or a coworking space. Reconsidering your real estate situation is one of the most overlooked ways to cut business costs.
Renegotiate with Your Vendors
Are the vendors you’re using for various services taking advantage of you? Even if you might shrug that off when things are going well, during the lean times every penny counts. Call up your internet provider, phone company, software vendors, and anyone else to whom you write a check every month. Odds are they’ll be able to find some wiggle room in the ample profit they’re making on your account. One key place to cut business costs is in your health insurance bill. While you certainly want to provide your employees with access to the best care possible, it’s worth shopping around to make sure you’re really with the best vendor to meet your needs. Many insurance companies are counting on you being so overwhelmed by the process of changing providers that you won’t even consider it. Break the mold and start shopping around – even if you stay with your current vendor you can most likely get a price cut.
Do You Really Need That?
Are there bills that you’re paying just for the sake of paying them? Of course there are – every business has a few. Now’s the time to find them and eliminate them. Do you have a recurring order of office supplies that your team never really uses? Are there software licenses you could cancel or consolidate? And are you really getting all that much out of those expensive trade show trips? Once you’ve cut the unnecessary costs, even though they seemed small at the time, you’ll be surprised at how much you’ve saved.
Change Your Credit Card Processor
Unless you’re already processing with 360 Payments, you’re probably paying too much for your credit card processing services…sorry. Now is the time to call up your current provider, tell them you’re trying to cut business costs, and see what they can do for you. Then, take that quote and give us a call at 1-855-360-0360 or drop us a line on our website. We’re ready to throw our hat in the ring.
PS – Has your business’s growth stalled? Here’s how to get it going again.
PPS – Stop credit card fraud in its tracks with these tips.