HOW TO DECREASE YOUR BUSINESS EXPENSES

September 27th at 4:08pm Published by firstdownadmin

In an uncertain economy when every penny counts, even the smallest increase in revenue or reduction in expenses can have an impact on company profitability. The good news is a large-scale company overhaul isn’t necessary. It’s often simple, common sense steps that improve the bottom line, especially for a small business.

In Accounting terms, a company’s expense budget is comprised of two types of expenses: fixed costs and variable costs.

fixed cost is an expense that does not change with an increase or decrease in the number of goods or services produced or sold. These are expenses that have to be paid by a company, independent of any business activity. Think rent, insurance, salaries.

Variable costs, on the other hand, may change significantly from one month to another based on the level of production or activity.

Simple Ways to Cut Business Costs

  1. Reduce supply expenses. Save money on office supplies by contacting vendors to let them know you’re price shopping.
  2. Cut production costs. 
  3. Lower financial expenditures. 
  4. Modernize your marketing efforts
  5. Use efficient time strategies. 
  6. Harness virtual technology. 
  7. Narrow your focus. 
  8. Make the most of your space.