Business expenses can get out of hand quite easily when the budget is not closely monitored. It is important to always review your monthly expenses and make changes when necessary to help your business run smoothly.
Business and finance experts provide some useful ways to help cut these costs in 2023:
1.) Buy Second Hand Office Equipment
“It can be tempting to always dole out money for fancy new office equipment and accessories, but this can drastically hurt your budget. Many good quality items such as computers, office chairs and desks can be purchased from second hand stores or pawn shops.
It can be expensive to outfit an entire office space, but it can be done quite cheaply as long as you have an open mind. Buying furniture floor samples is also an option for many office depots and they will sell it to you for a discounted price. Looking to repair many office items can also be much less costly than buying a brand new piece.”
Tip submitted by Donny Gamble, Owner of PersonalIncome.org
2.) Create a Realistic Budget Based on Past Expenses
“Creating a realistic budget is difficult when you do not even know where to begin. Looking at past expenses in detail can help you get a better idea of how much you should be spending in what area. If you are just starting out with your business, it is a good idea to talk to someone in a similar company or a financial advisor to find out what price makes sense for all business expenses.
Keeping an eye on the budget through the year is also very important as you can make some adjustments if needed to compensate in other areas. This will then give you a better idea of what to do the following year.”
Tip submitted by Brandon Hopkins, Founder of DiamondLinks
3.) Hire Freelancers More Often For Small Tasks
“There are many tasks that may not take much effort on your part, but you simply do not have time or the money to hire someone for minor but necessary tasks. Hiring freelancers can be very advantageous as they cost less than hiring a whole new person and they specialize in many areas.
Freelancers also like to stick with companies they are comfortable with, so you can always have them in your back pocket to assist with different projects. They can help with marketing, PR and social media, for the most part independently and only reaching out when necessary. This helps save you time and money.”
Tip submitted by David Kline, Owner of SkillScouter
More tips below from anonymous experts:
4.) Try To Keep All Files Online Versus on Paper
It is no secret that office supplies take up a large portion of a business budget. From paper, ink and printers to staplers, pens and pencils. These items always seem to be in short supply, causing you to spend more money each month.
Transferring your files and the majority of work to a computer will help you save money on a lot of office supplies. Having everything online will also make it easier for your employees and yourself to access information which is very beneficial for hybrid workers.
And although you will still need most office supply items, you will see the effect almost immediately on your budget from switching to a more paperless office.
5.) Give Employees Fair Workloads to Save on Overtime
Overtime can easily sneak up on anyone, especially when workloads are not divided fairly. Overtime really skews your set budget and causes you to pull from other areas to make up for it.
Managers and supervisors need to stay on top of the overtime by making sure each employee is given a fair amount of work and to always check in with them to make sure they are on time with their projects. If someone is falling behind, try to divide the workload between employees or look at extending the due date if possible.
6.) Be Cognizant of The Subscriptions Your Business Pays For
There are many great apps and subscriptions to help make your day to day business affairs much more manageable. Meeting programs, online planners and apps that keep your finances in check all oftentimes come with a price tag attached.
Always review your paid subscriptions and review whether or not you are still benefiting from them. You could sign up for a 6 month free trial and simply forget to cancel because you did not like it. These things can slip through the cracks easily and hurt your budget.
7.) Vet Prospective Employees Thoroughly
Set up an effective and efficient hiring process to ensure you get the right employee for the job. A high turnover rate and bad employees can cost you more in the long run. Invest time, energy, and money in developing your hiring process and a background check on candidates. Having the right people in the right positions will be instrumental in the growth and success of your business.