Let’s face it – sometimes there’s only so many jobs, clients, and dollars available. Whether you’re limited by a seasonal industry, slow or complicated projects, or simply the capacity of your business to handle additional work, there will be times where it just doesn’t seem possible to push the needle on your revenue. So how do you keep your business growing if you can’t make more money?
It’s simple – if you can’t make more, spend less. Cutting costs is the other half of the equation when it comes to bolstering your profit margins and boosting your bottom line. If your company seems stuck on the same page month after month, it may be time for a fresh set of eyes. So today, we’re talking about how reevaluating some expenses can allow you to cut back and may just give you the momentum you need to break through a plateau in your earnings.
Back To Basics
One part of the American entrepreneurial dream has always been bootstrapping it – and not just in terms of the amount of working capital you launch with. Cutting out some unnecessary expenses can go a long way toward slimming down the expense lines of your budget.
Paying top dollar for a luxury office space with a conference room that never gets used and empty offices gathering dust? If you’ve got more space than you need or facilities you aren’t using, consider finding a new spot that costs less and simply using more of it. Overpaying on rent or paying for space you aren’t using is just wasted money so unless there is an unequivocal reason to keep your current space, keep an open mind about moving.
And if you need to furnish your office space, buy fixtures for your merchandise, or just want a new desk to work at, consider checking out auctions and estate sales. That executive desk and leather manager’s chair that a mega corporation left behind when they built their new headquarters might not be brand new, but it works just fine.
Teamwork Makes The Dream Work
When it comes to working together, think beyond your team and start considering your neighbors. One way big corporations keep costs down is buying in bulk – and while that might seem unrealistic for a small business, it may not be as challenging as you think.
Do you own a retail shop? Most retail businesses use bags or boxes to send their products home with customers. Rather than ordering bags all on your own, consider banding together with your neighbors to place a bulk order. The same goes for receipt paper, POS systems, etc. You can also consider joining your neighborhood business association or Chamber of Commerce and leveraging the discounted services that they negotiate for their members, allowing you to save your business in the long run.
Keep A Smart Eye Out
Tracking your expenses and keeping them under control isn’t just about scrutinizing your costs once and seeing where you can trim the excess. It’s also about reviewing your updated budget on a regular basis and continually evaluating where you can make changes to optimize your spending. Making a habit out of performing this type of analysis quarterly – or even monthly – can lead to a big change in the health of your business’ finances over the long term.