As a business owner, you wouldn’t have gone a day without thinking about piling business expenses. Every day, you will be searching for new ways to cut down these costs and gain more profits with the available resources.
But how do you figure out which costs to cut down and which to concentrate on to accelerate your business’s growth? One way is to seek help from consulting service providers like P3 Cost Analysts for expense and cost reduction audits.
Are you looking for ways to reduce expenses? Here are five primary business expenses where you can easily save up to 40%.
Discretionary Spending
Buying new equipment, hiring additional employees, or painting your building without it being a part of a crucial diversification or marketing plan can add up more numbers to your business expenses.
Cutting down on such discretionary spending will help you save up to 40% on your overall expense. Even if you have made a contractual promise to spend money, you can negotiate and drop the plan.
As most businesses are now overcharged by the vendors, you may have a long-term contractual commitment. You can reach out to service providers like P3 Cost Analysts and get expense audit consulting.
The audit’s findings will help you tally out and cut down discretionary costs to compensate for the services you have opted for on a long-term commitment.
Credit Card Services
If you somehow cut down costs in the form of payments that you make for your credit card processing service, you can easily cut down around 30 to 40% of your business expenses. As many banks produce a complex list of charges for handling various credit cards, it can be challenging to compare prices.
It naturally gives the bank sales rep an advantage over the busy business owners and merchants. You can use a few shortcuts when you are faced with several bids at a time. You can propose the issue at the industry trade group meeting and find if someone has made the comparison before.
Or, you can work with cost analysts to figure out ways to cut down on expenses that go towards credit card processing services.
Company Laptops & Devices
It is one of the major areas where all companies, irrespective of their size or financial strength, can easily reduce business expenses by significant margins. If you have been providing company laptops, computers, and other digital paraphernalia for your employees all these years, it would have contributed a lot to your business expenses.
However, this is also a part of the business where you can save up to 40% of your expenses. When you consult a cost analyst for an expense audit, you will find that this is one of the expenses contributing to significant cost reduction.
You can accomplish this by subsidizing your employees to purchase their cell phones and laptops for business purposes.
IT costs can save even an average of 64%of business expenses, much of which can be redirected and offered to the employees as a stipend for BYOD.
Storage of Archive Off-Site
If your business is based in any region with premium real estate cost, then if you are mindful of the office space’s wasteful uses, it will help you save more than 40% of your business expenses. Retaining the archive documents and files infrequently used or referenced in your office space will take up too much space.
You will notice this mainly in medical offices and law offices. If you can ship such documents off to a different base, you will gain huge savings, and you will also have additional legroom for customer satisfaction and productivity.
Better utilization of office space is one of the significant cost drivers for a business or an organization.
Business Related Purchases
All businesses purchase things regularly. You can save a considerable amount of money if you buy less and barter lower rates. However, it is a given that rates decrease when the quantity goes up. So, accomplishing both together may seem to be impossible.
When the suppliers are ready to do business during tough times, you will notice that most of them will be ready to lower their prices. Even for smaller investments, you can ask for bids from different suppliers before making the final purchase.
If someone eagerly offers you a lower rate, then your current vendor will be okay with going lower still to keep their business going. This way, you get a good deal and save up to 40% on your business expenses.
Figuring out which expense is draining your money and which is helping you save can sometimes be tricky. In such cases, if you reach out to cost analysts, they will help audit and monitor your business expenses which usually goes unnoticed.
