Whenever you start a business, you’re pretty much guaranteed to have little cash flow due to the many upfront expenses you’ll face, but you might be running up your budget even more without even realizing it. How? Needless waste could cost you thousands of dollars. Imagine if you could cut that waste and have all that money in your cash reserves. Here are four areas where you can save in your business.
Be careful what you throw away. This is something children are often told, but it especially holds true with businesses. If you throw away unused equipment or supplies, you could be missing out on the potential to use that equipment in different departments where there might be a shortage of it. According to Gateway, “before investing in new equipment, check out your other options. Can you buy something refurbished or used? Should you just lease a piece of office equipment? You should also find ways to be more conscientious in your usage of things like using less ink on printing and going paperless.” You could also recycle it for other uses. So, before you compile your new purchase lists, better check your trash cans first.
Businesses everywhere wish they could lower their electricity bills. But many companies are unaware of how they can cut their energy costs. Luckily, there are many emerging technologies that can revolutionize the way your business manages its utility expenses. According to Verdant, “IoT and machine learning are helping businesses save significantly on their energy consumption and costs. From smart thermostats that allow users to program their energy consumption around daily occupancy needs, to smart sensors that monitor fluctuations in real-time occupancy, there are no shortage of energy management tools available to help business save on their energy costs.” Not only that, but inefficient light bulbs, vampire energy, and more can quickly begin to eat away at your utilities.
You might think that ordering lunch for your employees, even from fast food restaurants, isn’t that expensive, but you could save quite a bit more by having snack lunches made for them. Between using homemade lunches and home-brewed coffee, you could save as much as $3,000 annually compared to buying deli food and commercially made coffee, and that’s just for one lunch and one coffee. Just imagine how much savings you’d see if you multiplied that number by your total number of employees.
If you have a business credit card, you want to keep your balance paid down. Credit Cards explains, “paying the minimal amount or paying late will put you on the hook for payments that accrue due to your annual interest rates, and those can be hundreds or thousands of dollars. You should not only pay more than the minimum it’s a good idea to pay your bill early.” Business credit cards can be even better than business loans if you use them strategically, but make sure to keep a very close tab on them.
Basically, it’s not usually the big-ticket items that cut into your budget but the small items instead. Start looking for unnecessary expenses, and scale back when it’s too much. One great way to have a great starting mentality for savings is to create an effective business plan. If you can cut down on these four business wastes, you might be surprised by how you can make each dollar count.
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Matthew King is the owner of the Startup Forums, Alkries LLC, and co-owner at TR King Insurance Marketing. Partner at Independent Life Insurance Agent Association, Medicare Training 101, and Final Expense 101. When he's not creating content about running successful businesses here. He's most likely developing processes, diving into SEO, or gaming with his friends and wife.
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