05 Apr THREE TIPS TO DECREASE EXPENSES
As a business owner, keeping track of expenses is essential. However, it’s not just about tracking your expenses but also ensuring that you’re not spending money unnecessarily. In this blog post, we’ll discuss three tips to help decrease expenses in your business.
Review your expenses regularly
One of the best ways to decrease expenses in your business is to review your expenses regularly. Set a date in your calendar that is non-negotiable, where you go through all your expenses and make sure you’re not spending money unnecessarily. This process will help you identify money leaks in your business and find areas where you can cut costs.
As you review each expense, ask yourself one of three questions. First, is the expense 100% necessary to open the doors of your business? Could you reduce it? If the expense isn’t essential, then review whether it saves you time, saves you money, or makes you more money. If it doesn’t do any of these three things, consider whether the expense is necessary to run your business. If it’s not, then get rid of it.
Cancel subscriptions
We often sign up for many subscriptions without realizing it. Whether it’s a gym membership you never use or a software subscription that you no longer need, these recurring expenses can quickly add up. Take the time to review your subscriptions regularly and cancel those that you no longer need.
It’s also essential to be aware of free trial periods that automatically renew into a paid subscription. Set a regular meeting with yourself to review your subscriptions, maybe on the same day that you do your expense review. This process will help you ensure that subscriptions aren’t creeping into your business, causing you to spend money unnecessarily.
Shop around for better rates
Another way to decrease expenses in your business is to shop around for better rates. Take the time to look for better deals on services that you use regularly. For instance, consider negotiating better rates with your suppliers or changing your insurance provider to get a better deal.
One example is your mobile phone bill. Shopping around for a better rate can help you save hundreds or even thousands of dollars a year. By taking the time to look for better rates, you can save yourself so much money in operating expenses in your business.
In conclusion, decreasing expenses in your business requires ongoing effort and vigilance. By regularly reviewing your expenses, canceling unnecessary subscriptions, and shopping around for better rates, you can significantly reduce your operating expenses and increase your profitability. Remember, don’t let unnecessary expenses infiltrate your business and erode your profits. Unless an expense is necessary to run your business or saves you time, saves you money, or makes you more money, evaluate whether it’s essential to effectively run your business.
Hi, I’m Phoebe. and I love business! As a sought-after qualified accountant, I come from a place of experience, with over 15 years of running my own accountancy firm, MGA Accountants, I scaled the business to double the size before successfully selling in 2015. Now I am focusing on what I love, helping Professional and Trade service business owners step up from being the Technician to the true CEO of their business, to create more profit and time freedom to live the life of their dreams.
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