Business owners are often fixated on the gain— business is business and the goal is to make money. But the easiest way to maximize profits is in fact perhaps an internal method that has nothing to do with making sales: reduce expenses and save more money!
How can one do this? Here are four overlooked methods through which you can save money for your business.
- Writing and Following a Business Plan. Don’t expect to see financial success without a plan. At the forefront, your business plan will review your expenses with your goals, which allows you to focus on areas where you can try to cut down to maximize profits. Continually monitoring your progress against your strategy will keep you from straying from the plan, and help you avoid a rough establishment period when unexpected expenses come up.
- Being Frugal When it Comes to Equipment and Supplies. Office necessities are always going to be used, so there’s no way around that. But you can save a few bills by putting effort into being smart about equipment and supplies purchases. Cut costs by buying in bulk, finding business owner promotions and warehouse prices, renting equipment you might not need every day, and even try buying used.
- Outsourcing Work Online. For one-time or occasional jobs you need to be done that might not quite justify the processes of hiring or contracting someone new in the office, there are a number of online “workplaces” where you can match with skilled freelancers for your needs. You can find qualified professionals for any services from admin help, to email automation, to mobile app development. Since it’s all web-based, these sites provide a quick, simplified, and cost-effective source for finding great freelancers to work with—no strings attached.
- Outsource your accounting department. Hiring a full-time accountant on staff can be expensive. Especially if they’re designated accountants! You can outsource your accounting department and get much more value for your dollar by working with a virtual Controller or virtual CFO. They will have a team of bookkeepers and accountants, who create and manage the reports, while the virtual CFO will go through them with you. You get help from a whole team, for the same price as a full-time bookkeeper!
Following these methods, you’ll be sure to end up with extra money to spare. By working to save on your expenses, you’re already contributing to profits without even making a single sale!