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How to Reduce Business Expenses

By Bidvest Bank
If you’re a growing small to medium sized business, you’ll know how important cash flow is to your survival. One way to ensure you have enough money to run your business is to cut costs wherever you can. After all, reducing expenses means you have more money available to expand your offering or put away as savings. Simple yet small changes to your business spending habits can make a big difference in the long term – they just require some careful thought. Here are our top tips on reducing wastage to cut business costs:

1. Virtual offices

The workplace is changing and virtual offices are becoming a lot more commonplace. People work from home, coffee shops and on the road, and often, setting up a physical office is an unnecessary expense. Consider your business model carefully before committing to a physical office with fixed expenses for rent, electricity, internet and a phone line. 

2. Cut out paper

Do you really need to print out that email, only to throw it away again tomorrow? Try and store everything digitally if your business model allows for it, and you’ll save on ink and paper costs, as well as physical storage space in the office. Services such as Google Drive, Dropbox and Amazon Cloud Drive are great options for online storage.

3. Use energy-efficient appliances

While these usually mean a higher financial outlay at the beginning, using energy-efficient appliances will soon mean reduced business costs. From lightbulbs to geysers, there are plenty of options out there to make your energy usage more efficient. In doing this you not only reduce your expenses, but you’ll be kinder on the environment too.

4. Trade exchanges

You may not be able to afford the services of a PR company right now, but you can afford to provide five hours of your time every month. Participating in a trade exchange with another business has obvious benefits to both parties and if your services complement each other, it can be hugely beneficial. Start by finding a business that is also new and growing and approach them about a way that you could add mutual value to each other. 

4. Use your contacts

Word of mouth can be a very powerful advertising tool that is often overlooked. It may seem obvious but tell everyone what you do, including your friends, your family, even your neighbours! Chances are, they’ll know someone who requires the products or services you’re selling.

5. Use freelancers or interns

Hiring people costs money. If you’re a new business, using freelancers can make more sense when you start out, as you can use their skills on a needs basis and aren’t tied into contracts or fixed salaries. Interns are also a great option for basic services, as they provide a service while learning the ropes and gaining valuable experience – all at little to no monetary cost to you.

6. Pay bills on time

Not paying bills on time means you have to pay late payment fees or accrue interest on your account. Having a system in place means you won’t forget about any regular or ad-hoc bills.

Time equals money. Another way of cutting business costs is saving as much time as possible as a business owner, so you can focus on making your business a success. The Bidvest Bank One-to-One account streamlines your business banking by giving you one point of contact for all your needs. Find out more about it.