Running a business requires a lot more than just a great product or service plus some marketing. A business owner must be able to manage the finances of the company. In most cases, a lot of stuff comes with running a business that is not just limited to expenses for supplies and equipment. For many entrepreneurs, they have to take into account monthly bills such as rent or mortgage, utilities, Internet services, and more. These costs can add up quickly and eat away at profits.
What you can do is cut them down or eliminate them altogether. Here are some ways on how you can lower your monthly expenditures so that they won’t eat away your cash flow.
Take a Look at Your Utility Bills
You probably focus on other expenses every month, forgetting that your utility costs could be costing a lot especially since utility bills have been going up consistently over the past few years. This is especially true with electricity bills. If you notice that the business electricity rates in your bill always move up and rarely go down, then it could be time to consider a new provider. Comparing your utility service costs with those of other businesses can help you spot differences. However, this doesn’t mean that you should fork out more money simply because other businesses have already raised prices around town. Instead, look at ways on how to lower monthly bills by being wise about these costs and getting better deals.
Some of the best utility companies out there will give you a discount as long as you call them up and ask for one…which is such a small investment on your part yet it can save quite a bit in the end.
Work on Your Phone Bill
When was the last time when you checked if there isn’t better service out there? I’m pretty sure you’re paying more than what you should be paying for your phone services. The best way to improve your cash flow and contribute to your cost-saving efforts is by eliminating any unnecessary expenses that eat into the profits. For instance, if you don’t use your landline at home, there’s no need for you to keep it active.
If you have separate subscriptions for phone and internet, consider consolidating your services under one provider. This is another excellent way to lower monthly bills is by saving on administrative costs and also getting better rates on calls or Internet access. For many businesses, their telecom agents plus needs are met by one service provider which gives them volume discounts they can pass onto clients…or retain as savings. At the same time, they only have one monthly bill to check.
Cut Down on Grocery Bills
When you run a business, the money that comes in doesn’t go back into your savings account right away. Rather, there are bills that have to be paid first and these bills need their money which is why if the expenses still pile up, then it eats away at profits until there’s nothing left, or worse, you end up with no profit at all.
There are many things you can do to lower your grocery expenses such as buying healthier food, buying bulk items…or buying discounted items like those on sale. It can be time-consuming especially when you’re trying to find the lowest price tags on groceries since most people aren’t really aware of the different ways on how to lower monthly bills. That’s a task an app service can do for you, one that makes it easier and faster to find the lowest price without having to look through paper ads or going from store to store.
Always Look for Discounts and Coupons
Discounts and coupons can be found everywhere these days – from flyer mailers at your doorstep and on your social media newsfeed. So if you want to save even more money, look for coupons and discounts every month…no matter what it is that you’re buying. Also, don’t be afraid of asking for a discount especially when you’ve been loyal to a particular business or hotel. You might not realize this but many stores will give their best deals just to keep customers like you around so feel free to ask!
Consider Getting A Business Loan To Help Bring Down Monthly Expenses
This one might seem like the opposite of saving money but hear us out: some companies can get new equipment and speed up operations by using loans which help bring down the monthly expenses since payments are divided into smaller chunks. But always remember that you have to pay the money back with interest so this isn’t a free pass to spend more than your monthly expenses.
Also, it’s best if your company is already profitable since highly-leveraged companies aren’t as safe as we think they are. So always do your research and find out what kind of career trajectory your business will take before getting a loan to bring down those pesky monthly expenses.
Always Think About Ways to Reduce Monthly Expenses
This is perhaps the most underrated tip on this list: if you want those monthly expenses gone ASAP, make sure to think about ways to reduce them as much as possible. You don’t even need an MBA or some kind of finance degree. All you need is a little creativity and the desire to cut those expenses as much as you can. Better yet, change your mindset to find the most cost-effective ways of spending business expenses.
And don’t feel like it’s impossible to do. You can always look for discounts on everything from your monthly bills to those unnecessary luxuries that you hardly use today. You might be surprised at how many places will give you discounts and coupons if they find out that you’re an existing customer so just keep your eyes peeled and be patient!
As you can see from the tips above, saving money every month is pretty much a piece of cake once you know how or where to look for discounts and coupons. A simple reassessment of your expenses and spending patterns can also make a significant difference in your monthly expenses. Plus, with all these tips at your disposal, you can now save more money each month and find reassurance that you are in control of your business expenses.
Open Business Council offers resources, Trade Finance, business advice, SME Finance and a forum and directory for businesses! Improve your business and use the best digital, financial and funding tools to grow ROI – return on investment and ROA – return on attention!