9 Unnecessary Business Expenses You Can Cut Back on Now
January 31st, 2012Businesses need to control expenses in order to increase profit, especially in trying economic times when it is especially difficult to increase customer revenue. Following are some business expenses that can be reduced or cut:
Telephone Services
Many companies still have a land line in addition to many mobile phones. While not all companies are able to use mobile phones only, there are alternatives to costly land lines. Quality vendors exist who offer less expensive digital phone services (VoIP) and all that is needed is a high speed internet connection. Also, consider telephone bundling services offered by internet providers, as these may significantly lower phone bills.
Payroll Services
Choose a local payroll service instead of a large national firm. Local accountants can easily perform all payroll related functions and they usually charge a lot less.
Catering
Look for restaurants that offer free delivery of their food, or arrange to pick up those box lunches that are needed for a meeting. Look for the newest catering companies since they often offer deals.
Janitorial Services
Maybe employees who have had their hours cut would be interested in cleaning the office. Offer them the opportunity to beat the current janitorial service’s bid. Check online bulletin boards and newspaper classifieds to find part time janitors who will work at reduced rates.
Insurance
Send insurance needs out for rebid annually. Insurance companies and brokers can easily become complacent and neglect to properly monitor yearly premium increases. Try a new company or a new broker, as they may be more likely to offer cheaper rates and more advantageous policy structure.
Health Insurance
Raise deductible limits in order to lower premiums. Raise employee contributions to health plans. This may not be popular, but few employees will consider quitting their jobs solely because of a reasonable insurance premium increase.
Legal Services
Look for online entities that offer legal forms and basic services for a low monthly rate. Try to negotiate a cheaper rate with present legal counsel for services like lease and contract review. Find a less expensive lawyer for the more mundane legal tasks and use the high priced attorneys for major issues.
Rubbish Disposal
Try to share a bin with another business in the same building or area. Compact trash, recycle and reduce pick up days. These efforts can cut rubbish disposal costs in half.
Yellow Page Advertising
This type of advertising can definitely be negotiated. Also, reconsider the necessity of traditional directory advertising. Many businesses have shifted their advertising spend to the Internet.
Business owners need to constantly monitor costs and services. Those that take a few hours per week to carefully analyse exactly where dollars go can save thousands per year. Remember, almost all services can be negotiated and vendors will often lower prices in order to keep customers. In these difficult economic times, it is more important than ever to be vigilant, since costs for business services can increase steadily and erode the bottom line.
This is a guest post by David Boyd. David co-founded Saving Up, a new and upcoming savings account comparison service. He has also helped to put together a range of guides to saving money designed for Australian consumers.
