6 Ways Your Business Can Save Money
~by Kara Masterson~
In the corporate world, the major emphasis is usually on building sales, increasing profits, and maximizing earnings per share. However, many business owners overlook the other side of the ledger, which is minimizing expenditures to boost earnings. Luckily there are tons of things you can do within your business to save money.
Use Tax Write-offs
As a business owner, you’re allowed to deduct certain expenditures. Some examples include office rent, supplies, advertising, and inventory. Make sure you take full advantage of these write-offs by studying tax deduction laws or getting the aid of a tax professional.
Promote Your Business URL
While search engine submissions cost you money, you can leverage those expenses by including your URL on all business cards, company letterhead, uniforms, and in the yellow pages. This can generate more traffic to your website, leading to additional sales.
If you’re having difficulty tracking all expenditures, start using a credit card for purchases. That way you can document and study your actual expenditures on bank statements, then make the necessary adjustments. You can also use the credit card as leverage to get discounts when you do pay by check, according to The Wall Street Journal. Suppliers have to pay merchant fees for credit cards, so they might be willing to give you a discount if you use a company check.
Increase Co-op Advertising
You can save significantly on advertising by using cooperative plans. Whether you’re promoting your business through a postcard deck or local coupon magazine, the ads are going to be a lot cheaper than any solo advertisement you place. Co-op advertising gets your message out to thousands more potential prospects.
Find ways to reduce your utility costs. Use automated water faucets or lighting. Keep the thermostat comfortable, but lower during the winter. Another option is to reduce your electrical expenses by purchasing it through a solid company like Lumo Energy. Companies like this can help you find the best way to save money and energy.
Hire Independent Contractors
With independent contractors, you don’t have to pay salaries and medical expenses, which can save you tens or even hundreds of thousands of dollars per year. One caveat is to make sure you fully understand the definition of “independent contractor” in the tax codes, according to Entrepreneur.
Other expense-saving measures include purchasing used equipment and recycling print cartridges. The more ways you can think of saving on business expenses, the more it will contribute to your bottom line.
Kara Masterson is a freelance writer from West Jordan, Utah. She graduated from the University of Utah and enjoys writing and spending time with her dog, Max.