Expert Expense Reduction: Don’t Sweat The Small Stuff
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Although it may be the start of a brand-new year, economists’ predictions for 2009 won’t give business owners much cause for celebration, especially when struggling to push profits into the black each quarter. If you’re worried about how your business is going to find the extra cash to push through another stormy year, take note: cost reductions and reducing overhead expenses is the best way to give your business a healthy financial cushion to weather any economic storm. Yet you don’t have to slash major expenses like payroll or benefits; instead, look to the small stuff to reduce costs and save your business much-needed profits.
Many businesses tend to overlook just how much the “small stuff” – for example, internet and phone, mail, travel and other assorted costs – can add up and take a hefty bite out of your quarterly or year-end profits. Remember, cash that is spent on these expenses is coming straight out of your bottom line; expense reduction will only help to put that necessary cash back where it belongs – in your profit margin!
If you’re looking to reduce costs within your company, first check out your contracts with internet and phone service providers. Many times, business owners overlook these contracts, since it can often be a hassle to spend so much time on an administrative task. Yet quite often companies can save thousands of dollars just by switching to a cheaper service provider or by negotiating a lower rate. If you notice that your business is overpaying, get your service provider to lower their costs, or switch to another company to save maximum amount of dollars with almost minimal effort.
Additionally, take careful stock of your inventory – are you continuing to make expense orders even though your business is sitting on a gold mine of office supplies? Do you have the tendency of ordering only name-brand products? Minor changes in how you keep your inventory can add up to a healthy boost in overall profit numbers, so reduce costs by ordering less expensive office supplies only when your company truly needs them. Also, if you have the tendency of having mail and packages overnighted to your company, kick the habit – you’ll reap major financial savings by sending and receiving all post by regular class. Don’t forget to review your cost reduction efforts annually, as this will help your business keep on its frugal track.
If you want more information on how to help your business strive and thrive towards financial security, visit www.kenhimmler.com, the IRA and 401-K experts!
Article authored by: Ken Himmler, Sr.
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