Sometimes business advice can get a little lopsided. What you need to do, say the gurus, is get out there, generate leads, make more sales and then profits will follow as day follows night. But of course that is only half the equation. Just like trying to fill a leaky bucket, stopping money draining out of your business is just as good a way of increasing your profits as increasing the amount coming in. And particularly if you haven’t run a fine tooth comb over your business costs in recent years, it can be much easier. Here are our four top tips to help you slash your expenses and make more money.
Look hard at recurring expenses
Often we pay a lot of attention to money spent on big ticket items like vans or equipment. But we spend less time on the small things which drain our bank accounts every month yet which with only a little effort might save wads of cash if they could all be trimmed. Business phone lines and broadband costs are a classic – most businesses have been with their existing provider for years but could save twenty or thirty percent by switching to a cheaper supplier like XLN Telecom.
Property costs
Property costs like rent, mortgages, leases, etc could be the black hole at the centre of your accounts. And they can often be quite flexible, particularly if you are able to relocate your business to new premises. Have rents decreased in your area? Would your landlord like the hassle of having an empty property during a recession? If not, it could be a good time to review your rent when the contract expires.
Take a fresh look at product suppliers
If you sell a product, then your suppliers will no doubt try to increase their prices over the years as their customer base grows and matures. Perhaps you could get cheaper prices if you looked around? Even if you rate your current suppliers highly or if they are particularly convenient, it isn’t disloyal to take a look at alternatives – if you find cheaper prices elsewhere you could use them to negotiate a discount with your current provider.
Professional services prices vary wildly
Have you been with the same accountant for years? It can be hard to switch when they are like an old friend and know your business inside out. But there can be a big difference in the costs charged by accountants, solicitors and other professionals and it is well worth finding out the cheapest rates currently available.
About XLN
XLN Telecom offers cheap prices for business phone lines and business broadband so your business can keep its costs low. Visit our website to find out how we could save you money: http://www.xlntelecom.co.uk/