3 Money Saving Tips on Business Expenses — The Kind Tips - Tips for Life, Study, Work and Entertainment

3 Money Saving Tips on Business Expenses

3 Money Saving Tips on Business Expenses

Generally, there are two ways to add money for your company—you can either try to increase the revenue, or you can save the business expenses. Neither of them is easy to achieve, but these two approaches give you better control of your business operations. If you would like to add money by cutting the expenses, please read ahead the following money saving tips.

1. Credit and cash flow.

If your company is stuck with the cash flow because of the cyclic nature of your business, or if you are making some changes that temporarily limit the sales capacity, you best choice is to borrow money to keeps your business until the sales are back up to position. Instead of taking on more interest debt in forms of installment loan or line of credit, you should ask your vendors to see if it’s possible to manipulate your terms and help save money for your business. Communicate with the vendors and explain to them what situation you are in and request for term extensions up to 45 or 60 days. Or, request for an increase in credit limit so you will not have to finance purchases from banks. But before you do this, please make sure you are able to pay the invoices when they are due and you will also need to be prepared to apply the same courtesy for your vendors when they also need it. But in a word, doing this can save you the costs of borrowing money.

2. Shrink the office.

According to online small-business resource website, Entrepreneur.com, if you want to save money on overhead costs, one way is to re-evaluate the office space and decide how much room you can do without. Some employees can work from home remotely, such as sales, customer support, marketing and secretarial positions. Also, it will be a good idea to get the employees together once or twice a week to report progress or swap ideas. It is worthwhile your try since reducing the office space can help you cut the expenses on rent and utilities.

3. Save money on telecommunications.

You can also save some money on the telecommunications and maintain the same service quality that you provide for your customers at the same time. If you are using a standard landline phone, you can think about the option to change it over to Voice over IP (VoIP). The VoIP service uses a broadband Internet connection and could save money for your company. If you are using a toll-free number, it is the time to think about getting rid of it. With the calling plans that not charge for long distance by minute any more, your customers will not even notice that you save the money by no longer using a toll-free number.

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