save money

10 ways to save money without sacrificing business growth

Happy Holidays! Are you busy shopping to celebrate the season? If you’re a business owner, you’re probably in for these recommendations that will help you reach higher goals without breaking the bank.

1. Ask from discount from regular sellers. Every entrepreneur has suppliers to support the business endeavor. You can save money by asking for discounts based on the consistency and volume that you have ordered from suppliers. It’s a trick that will create value of your business and inspire your suppliers to keep sending your orders.

2. Find ways to reduce interest payments. Do you know how to cut spending amount for your business? By using a credit card, it means that you will have to pay high interest rates. You can change your game by collecting payments from customers at the time the product or service is delivered instead of billing them with 30-day terms.

3. Increase variable compensation. Just reduce compensation by 10% and add a reward element based on their revenue achieved or another financial-based metric. This is what many experienced sales and management staff do these days. Any variable compensation should give them a noteworthy earnings upside.

4. Decreases production costs. This is also a highly recommended way to increase cash flow and keep the business growing at the same time. Make sure to look at every component that goes into cost of goods (or services) sold and set a goal to reduce each by at least one percent. As an opportunity to increase gross margins, this will be considered additional income for the company.

5. Conduct an insurance audit. You can cut company expenses by having a thorough audit of the insurance relating to the business. If there are overlapping insurance contracts, you can just focus on the necessary ones especially if the possibility loss or exposure to risk is very low.

6. Decreases excessive services. There are companies that have unnecessary service levels nowadays. You can create a more reliable team to do the work efficiently and effectively after dissolving unnecessary job posts. Reassign those who are affected to a new streamlined opportunity to serve the company.

7. Eradicate low-value meetings. There is no need to have several schedules for the team to meet every month. The trick here is to decide on action items, deadlines and who is responsible for each before adjourning. It is like going directly to necessary parts of a meeting to avoid wasting time.

8. Find ways to save on rent expenses. Since the influx of technological tools, there are amazing ways to reduce rent. Many employees can work from home and just report through online conference calls or other arrangement. If there is no office, you can eliminate the expenses to pay bills.

9. Change credit cards. If you pay your credit card bills on time, you can call the company and ask for a lower interest rate. You can also apply a balance transfer offer that is usually a 3% fee and no interest for one year from another credit card company for cost savings.

10. Having another way to connect. This is like cutting the cord by using a Voice over Internet Protocol or VoIP service.

These recommendations meant cutting overhead expenses without being noticed by employees. If no one discovered the secret, then the expenses aren’t really necessary at all.

Revised: April 26, 2018, 12:03 p.m.
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