Simple Ways to Cut Your Company Expenses

Written By: John Tejada Published On: 27/04/18
Simple Ways to Cut Company Expenses

Plenty of companies, especially new businesses, struggle to bring in enough revenues to offset their expenses. Owners and other decision-makers often incorrectly believe that it takes drastic action to cut expenses, such as letting go of employees, ending benefits, or wait until “someday” to purchase products or services that are necessary to improve production processes, customer interactions or marketing efforts. You don’t need to give up on moving forward with your business to reduce operating expenses. You merely need to come up with more creative solutions.

Expenses: Recycle Everything Possible

Some business owners surprisingly never recycle as much as possible. What they fail to understand is the benefits associated with recycling. Recycling reduces waste disposal and other expenses. For example, if your company has a cafeteria, you can reduce the costs associated with buying fertilizer for your landscaped gardens by turning the food waste into nutrient-rich compost. Disposable molded cup holders are typically made of biodegradable pulp that you can put in compost bins. You can even enjoy benefits from recycling office furniture and equipment. If you donate the items to charities, you can write off the gifts as charitable donations on your tax returns. Additionally, certain manufacturers and retailers give companies who recycle their electronics discount percentages off the cost of future products and services.

A company that recycles is often labeled as a “green” business by the public, even if that company doesn’t reduce its carbon footprint or use green building materials or energy solutions. Since customers are more likely to buy products and services from companies that they perceive as environmentally-friendly, you actually increase revenues while cutting expenses when you recycle.

Trade Instead of Pay

If you’re having trouble coming up with the money that you need to invest in your business because of current high expenses, talk to your vendors and other businesses in your industry about forming reciprocal partial or full trade partnerships that benefit everyone. For example, you might ask your equipment supplier if they would be willing to reduce repair and replacement costs by a percentage if you did the same for them in turn with your products and services. Another option: You agree to provide written and video testimonials about how much you use and like the products or services of a partner business as part of the exchange or hand out the other company’s business cards and promotional items to your customers to help the other business gain new customer leads.

Purchase Used Office Items

A wide range of offline and online businesses sell used office furniture, equipment, and other supplies that are in good shape. You could save tens of thousands of dollars in replacement office item expenses by shopping for used items at flea markets, thrift shops, used office supply stores and office rental companies. You should also check newspapers, online classified sites, and social media yard sale groups. Other business owners who have recently upgraded their company office or industry-related items or have decided to shut down their businesses entirely utilize the internet to find buyers. Many places also advertise offline local “going out of business” sales via these methods.

Switch to VoIP

Stop wasting money on landline-based telephone systems, infrastructure, and services. Switching to hosted business VoIP services is one of the best ways to save money on communications. Voice over Internet Protocol makes it possible for you to make and receive phone calls and enjoy a variety of call features over the internet at typically a lower cost than traditional options. Since internet infrastructure is often newer than landline phone infrastructure, you can expect fewer communication disruptions and expensive tech support calls that occur when landlines go down. You can typically keep your existing phone numbers, including toll-free ones.

Extra features, such as cloud-based voicemail boxes, voice-to-text transcription and message forwarding and remote customer service and after hour answering services, are included or offered at low prices in VoIP bundled plans. With low-cost special adapters, you can even save money on equipment costs by continuing to use your existing high-end business phones or mobile phones.

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