Every business has expenses and costs are carefully monitored especially when your business is just getting started and it is easier to keep up with your budget. As we grow our company we find it harder to control our finances, which can prove to be dangerous for our prosperity.
Here are some things you can do to reduce your costs and administrate your budget intelligently:
- Create competition among your vendors to obtain a better price. Even if you’ve started with a certain vendor, you can change them as you progress if competition makes you a better offer, or influence the ones you collaborate with into giving you better rates
- Calculate on your own withdrawals and deposits to be sure that the bank didn’t screw anything up, voluntarily or not
- Bring interns and let them take care of the less important tasks. That will save you a lot of time, as you can allow your employees to take care of other aspects (including budget related ones) that require more experience and skills
- When possible, relocate your back-office employees to other cheaper locations to save money
- Combine internal events into a single one, to cut down on the costs
- Use digital solutions as much as you can instead of the old paper and ink. Those need infinite supplies, which means higher costs, not to mention all the waste
- Share your office space when possible or downside. Moving into a smaller space or sharing your space with another company will definitely help your overall budget
- Educate all your staff to negotiate prices and obtain discounts
- Be as accurate as possible with your finances, especially when it comes to payroll. That is where most of the errors occur which can cost you a lot of money over time
- Turn to online marketing. It will bring you the fastest results with a minimum of investment
- Try to decrease your credit card debts. While it might seem like a good idea to charge expenses to your credit card, this will prove to be a costly decision in the long run, due to all the interest rates and other fees
- Use mobile phones and VoIP instead of your traditional phone lines. They will save you significant amounts of money over time
- Don’t spend recklessly on software. While software is definitely essential nowadays no matter what kind of business we are running, we often tend to buy more than we need. If you notice apps and programs that you don’t use on a regular basis, get rid of them and only purchase what is absolutely necessary.