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Save That Money! How to Save Your Company Thousands a Year

Every year, about 8% of American businesses shut down for good.

Some of these businesses close after their owners retire. Others cease to exist after their owners decide to sell them to another company. But the majority of them shut down simply because they’re not generating enough profit month in and month out.

Is your company currently in danger of going out of business because it’s not making any money? One way to get around this is by finding ways to save money every month.

When you save that money that you would normally spend, it’ll put your business in a much better position and help it become more profitable. Take a look at some of the easiest ways to save your company thousands of dollars each year below.

Begin by Making Sure Your Business Is Using a Budget

Does your business have a budget set up that you use to make important spending decisions? If not, the very first thing you should do when you’re trying to save that money is create one.

A budget is an invaluable tool for businesses that are looking to save. It’ll show you where you’re spending your money now and give you ideas as far as what you can do to scale back your spending.

A budget will also let you know what your company can and cannot afford to spend money on every month. It’ll be much easier to say “No!” to unnecessary spending when you see that you don’t have room in your budget for it.

Consider Moving Your Business Into a Smaller Space

If your business is growing by leaps and bounds right now, it might not make a whole lot of sense for you to move into a smaller space. You’re going to outgrow that space before long and force your employees to work on top of one another.

But if your business is operating out of a space that is larger than what you need, why not consider moving into an office, a plant, or a warehouse that’s a little bit smaller than what you have now? It could cost a lot less money every month and make your business more efficient in the process.

Think About Allowing Your Business’ Employees to Telecommute

Telecommuting doesn’t make sense for every business. If your company is in the business of, say, manufacturing products, you need your employees to come in every day to work on creating the products that you sell.

But if you have employees performing tasks that they could perform from home, you might want to think about allowing them to telecommute. Studies have shown that about 70% of people telecommute at least one day every week on a global level as of right now.

Many of your employees would love to get the chance to work from home. And you would love it, too, because it would cut some of your operating costs.

Telecommuting has turned into a win/win for many employers and their employees.

Keep Tabs on the Business Expenses Your Employees Rack Up

Many businesses will foot the bill for the business-related expenses that their employees rack up. They’ll pay for everything from cell phone plans to taxi rides for their employees, as long as these expenses are tied to their business.

The problem with this is that many employees will then spend more than they should on business expenses when they know their employers are paying for them. It’s why it’s a good idea to get into the habit of checking up on your employees’ business expenses every so often.

If you see your employees racking up huge bills for things that aren’t that beneficial to your business, you can ask them to scale back their spending. You can also remind your employees about not abusing your company’s expensing system.

Work With Suppliers That Offer the Best Prices to Your Business

Regardless of what kind of company you own, you probably order a bunch of different supplies every month to keep it up and running. From basic office supplies to products that you sell to your customers, you’re always ordering things and having them shipped to you.

Are you getting the best possible price on them? You and your employees should make every effort to work with suppliers that will offer the most competitive prices to your business.

Visit this website to see a good example of a company that offers great prices on products to its customers when they buy in bulk.

Change Your Business’ Approach to Marketing

To win in the business world, you need to learn how to market your company and the products and/or services you sell. There is no getting around it.

The U.S. Small Business Administration suggests that companies should spend about 7% of their gross revenue for marketing purposes. It’s a good investment for businesses to make.

If you crunch the numbers and find that your business can’t afford to spend that kind of money on marketing, though, there are all kinds of low-cost methods of marketing your business in 2019. From utilizing social media to launching guerilla marketing campaigns, your company has options.

Review Your Business Spending on a Regular Basis

It doesn’t matter how big your business gets or how profitable it is. There should never be a time when you’re not trying to save money.

Review your business spending at least once a month to see where you could be saving. There is always at least a little bit of spending that you could trim from your budget to increase your company’s profits.

Save That Money Your Business Used to Spend to Turn Bigger Profits

You could make the argument that saving money is even more important than making money to most business owners.

Businesses can make all the money they want. But if most of that money is going right back out the door, what does it even matter?

Start to save that money your company is making so that you can grow and make even more money moving forward. You’ll make your business more successful than it already is when you make saving money more of a priority.

Check out the rest of our blog for more useful tips on generating bigger profits for your business.