The formula is simple: the less you have going out in expenses, the more profits that you get to keep.

 

And while most business owners are constantly analyzing the large expenses that occur in their business to do just that, there are other, more practical things that could allow you to keep more of your earnings. Let’s take a look at three things you can implement today that will reduce your expenses.

Buy Used

Whether you need new office furniture, heavy equipment or new technology, you can save a bundle by buying it used rather than new. You can find good, used items on ebay or Craigslist, and most of the time, can walk away paying half of what it would cost new—sometimes even less. In order to make this work for you, you’ll have to ask yourself some hard questions. Do you really need a brand new desk with all of the latest options, or would a good used desk work? Do you have to have new shiny industrial equipment, or will gently used equipment do the job just as well? The answers will be different for each individual, but it always comes down to this: would you rather have the new “things” or the cash in your pocket?

Ask for More

Using coupons and asking for discounts is the new chic. People are spending vast amounts of time coupon clipping and watching sales in their everyday lives, so why should it be any different for small business owners? Vendors and manufacturers are aware of the trouble many small business owners are having in today’s economy, and they’re also aware that things will eventually turn around. And if they want to do a thriving business when things do turn around, they will need to have done everything they can to nurture their clients in the hard times. Knowing this, you shouldn’t hesitate to ask for discounts or other deals from your suppliers, such as a discount for paying an invoice early. Whether it’s for items you use every day, or occasional purchases, you should be able to negotiate a better deal than you currently have. And if your supplier won’t deal, don’t stop there. You’ll likely be able to find one that will.

Analyze Initial Expenses

Business owners often sign up for bad deals when they’re getting their business up and running because they don’t have the time to learn every detail about phone options or credit card processing. Take a moment and consider the expenses where you feel you are getting nickled and dimed: you probably are. Credit card processing is a great example. Take a moment and run an auction to compare rates…you may be surprised to find a significant savings opportunity just in that one place.

It’s easy to think of cutting expenses only in terms of the big items or large expenses, but the little things add up, too. Look at your business and its expenses with new eyes today—and who knows, it may just add to your bottom line.

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