The only way for your business to be financially successful is if the money coming into your business is more than the money going out. Meaning that there is more profit than expenses. But, for some businesses, that’s not always the case.
If you find yourself running into financial issues, know that you are not alone. You should also know that it doesn’t mean your business is set up for failure. It just means that you need to do one of two things: increase profits or decrease expenses.
Depending on your industry, sometimes increasing profit is out of your control, but decreasing costs isn’t. Here are five ways you can start decreasing your business expenses:
We all have them, the subscriptions we no longer use, ones we do not use as often as we intended, or even ones we could probably do without. So cancel, unsubscribe, or put on hold temporarily any subscriptions you don’t use or need.
Invest in automation
Anything you can automate will save you time. Saving time means saving money. Something like invoicing is an excellent task to automate, especially if it’s something that occurs on a regular basis.
Look for free versions of programs
There are so many programs that have AMAZING free versions that you can do business solely using free versions! Some of my favorites free programs include: Canva for creating graphics and content, Facebook Creator Studio for scheduling on Facebook and Instagram, and Wave for invoicing and keeping track of expenses.
Reduce overhead costs
Rent and utilities are not cheap and can cut into your profitability dramatically. Having those overhead costs means you need to bring in enough money to pay those expenses at the very minimum. Depending on the nature of your business, consider reducing these costs by downsizing your office or rented space. If downsizing isn’t an option, could you share a rented space with another entrepreneur in an effort to reduce the costs or rent space out?
Reduce staff hours
I hate this recommendation, but I have to say it. If the only thing you can do to reduce your business expenses is cut back on staff hours, then it has to be done. You will not be able to run a sustainable business and pay your staff if you don’t have enough money coming in. Business is business, and that part of the business really sucks.
I have so many other small suggestions too, like hosting business meetings over coffee instead of over lunch, reducing travel expenses if possible, and cutting down on office supplies if you can. These small suggestions will have a significant impact too.
Remember, every dollar saved is one step closer to sassy and sexy money.