How to Save Money on Your Business Expenses
Running your own business can be incredibly expensive. Even if you have just a small home business and you are the only employee, your outgoings might be more than you could imagine. If this is a concern of yours, here are some ways you could save money on your business expenses.
Change Your Insurance
Business insurance can be incredibly expensive. However, there are several things you can do to transform this. Shopping around for a new policy might mean that you are able to find the same level of coverage for a much lower price.
You might also see if your current provider is willing to be a bit more flexible with your policy. Ask if you can reduce your premiums in favour of raising your excess. This is the amount you have to pay in the event that you do have to make a claim. Some insurance providers might be very happy to let you drop your premiums if you take a hike in excess and it will allow you to gain a little control over your expenses.
Evaluate Your Production
If you manufacture a product, you might want to take a look at your current production line. Are you outsourcing a step which could be cheaper if you did it yourself? It might be expensive to set yourself up for this process, especially if you need to purchase specialist equipment, but the costs can soon balance out once you are not paying for the other manufacturer.
You also might want to take a look at the cost of your components. While you should never sacrifice on the quality of your products, you may be able to find a cheaper alternative when you go to another source. Always be on the lookout for a better deal which will let you gain a little back from your business expenses.
Cut the Cost of Your Workspace
Are you running your business out of an expensive location? Even if it is just a studio office in amongst many other offices, it might be adding up to a lot in rent each month. It might be better for you to downsize and take a look elsewhere for a better deal.
Have you considered renting a storage unit? Safestore prices are incredibly competitive and they will provide you with all the space you need for your business. You can set up a small office, a warehouse, or even a workshop within one of these storage units for an affordable place to run your business from.
Sell Your Car
Do you drive both a personal car and a branded van for your business? The costs of running both these vehicles might be more than you can manage at the moment. It might be better for you to sell the car and drop down to just using the branded van.
In addition to the savings you might make, the more you drive your branded vehicle, the more you are conducting free marketing for your business. Who knows who might see your van and decide to check out what your business has to offer? This is too good an opportunity to miss.
Saving money on your business is an easier prospect than you might think. All you need to do is make sure that you are looking in exactly the right places for the savings and scaling back where you need to. With a few careful changes, you should be able to spend less while still delivering the same fantastic level of service as always. Start identifying where you can make savings for your business expenses today.
This is an article provided by our partners network. It does not reflect the views or opinions of our editorial team and management.
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!