As spring is traditionally a time to do some ‘spring cleaning’ – why not take the time to spring clean the expenses in your business and save some money?
Below are some tips when spring cleaning your business expenses:
1. Lose expenses that don’t deliver value
Do you just pay bills out of habit – or are they paid automatically via direct debit each month? Make sure you review these expenses to ensure they are still delivering value to your business. For example, monthly subscriptions on project software that you no longer use is money wasted.
Print your Profit and Loss Statement and work through each expense items asking yourself “Is this expense necessary to keep my business running?” Or “Is this expense necessary to service my current clients or generate new clients” – if the answer is NO – eliminate that expense. You may only save $50 a month, but that adds up to $600 per year.
2. Renegotiate contracts with your suppliers
Have you been a loyal customer for many years? Maybe it’s time to call your suppliers and see if they can do a better price for you. Or maybe upgrade your service for the same price.
Some prime examples are:
- Telephone/mobile contracts
- Electricity and Gas
- Insurance policies
Call and mention that you’re looking at pricing up some other options and wanted their best price on your current contract/service. Many of the larger suppliers allow staff to offer incentives for customers to stay with them – ie 3 months free if you sign up for 12 months, or 10% off for being with them for 10 years.
3. Make your bank work to keep your business
Do you know if you are getting the best interest rate on your business loan? If not, it’s time to call your bank and see if they can do a better deal. Or ask your finance broker to do it for you.
It’s amazing how keen banks are to reduce the rate when you mention that you’re thinking of refinancing. Or sometimes they waiver the annual fee – which could save you $300+ annually.
Also check your business package is working for you. Are you getting charged a monthly fee for your business everyday account or is it free with your package?
Remember, every dollar saved is a dollar in your bank.