Your top three business expenses are your employees’ wages, inventory and rent. According to an infographic from Bolt Insurance, 1 in every 5 dollars your business earns goes toward paying your employees. That’s a tough expense to cut, but there’s a lot you can do to reduce your costs on equipment, taxes, utilities, phone service and shipping.
You might not save a lot on your business expenses right away, but these kinds of savings add up once you’ve implemented a few of them. Bolt offers us 16 ways to save on the top 10 business expenses. Some of the those tips include:
- Keep Payroll Taxes Down: Offer employees added benefits instead of bonuses.
- Reduce Your Hardware Footprint: Desktops use far more power than new laptops or tablets – when computers break, replace them with new models.
- Rent: Even though you have a fixed lease, given the state of the economy, you can negotiate.
- Accrue Interest: By making your bank deposits early in the day, you can get credit (and start accuring interest) that same day.
- Utilities: Change your light bulbs, turn off the lights when you’re not using them, shut down your computers at night and switch off your surge protectors to avoid any electricity vampires like cell phone chargers.
Check out these tips to save on your business expenses:
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Editor’s Note: This piece was originally published on SmallBizTechnology and is republished here with permission.
I would add that it’s helpful to engage the whole company in content development. Everyone from the secretary to the salespeople to the CEO should be contributing.
Anita: That was a big infographic! I think that the best way to cut small business expenses is to have actively work on your supply chain management, e.g., with value analysis, category manegement and J-I-T deliveries.