Do you need to reduce business costs?
Analyse your business costs, your accounting software should be able to produce a report for you, list your largest outgoings and see what can be cut back on.
• Do you use all your office space? Can you reduce the amount of space you currently lease or rent?
• Can you consolidate debts into a more manageable monthly amount? Beware of anything that will affect your credit score, consider talking to a debt management company but read the small print!
• Negotiate with suppliers. Don’t be shy about asking for discounts, especially if you buy in bulk.
• Consider staff redundancies.
You can use your accounting software to forecast the potential savings and affect they will have on the business. Cost-cutting might not always be the best way to go, what if increasing the marketing budget, which in turns increases sales is the right way to go?
Meet with your accountant who can help you see the potential of different strategies on the business.
How do you keep costs down in your business?