A key piece of investment advice that all businessmen should heed is – it doesn’t matter how big or small your business is,if you don’t keep costs under control you will be in trouble. Even if your business is thriving, you still need to be careful with your expenditure.
In today’s economy, no company can afford to waste money on unnecessary expenditures. Here are some tips to keep control over your businesses expenditure:
Reduce Energy Consumption
Switch off equipment and lights when not in use anddon’t turn on any appliance or computer unless you really need to use it. If possible, try to use new, energy-efficient computers. Also, upgrade lighting fixtures to be compatible with fluorescent or LED bulbs. You can save a significant amount of money every month if you do away with incandescent bulbs.
Don’t Sign Vendor Contracts For More Than One Year
Don’t sign up for a multi-year contract – even if you think it would reduce costs. If something goes wrong, you could end up paying much more for the mistake. Multi-year contracts favour the vendors, so it’s wise to review the contracts once a year, even if it means additional paperwork. This small step could save you a lot of time and money in the long run.
Whether you want to outsource to a company or an individual contractor, do your research beforehand. Make sure the company or individual has a good reputation. You don’t have to spend a lot of money on outsourcing, either. Some contract workers give discounts to companies who give them large projects or volume work.
Improve Your Accounting And Bookkeeping Practices
Don’t ever slacken when it comes to keeping records of your spending and revenue. If you spend company money on a small lunch, record it in the books. Make a habit of asking for a copy of your receipt wherever you go – even if it’s just for a dollar item. Have your employees do the same.
Likewise, make a note of every single sale. Good bookkeeping practices will help you notice any overspending problems.
Choose SEO Services Carefully
Whether you have your own in-house SEO team, or a third party provider, you need to choose wisely. If you choose a low tier SEO company, then they will only do a substandard job. On the other hand, you don’t want to spend a lot of money if you don’t have to. Compare different services and go with the one you think will bring you effective results for both the short-term and the long-term. If you don’t start seeing results within three or four months, drop the provider and find another one.
Keep Your Travel Costs Down
It goes without saying that your employees are entitled to eat while traveling on behalf of your company, but you should still give them a set allowance. Also, if they are traveling on a business credit card, direct them to a specific hotel group to gather the bonus points. Make sure they get the rewards for using the credit card, so that you can save on future bookings.
Keeping control of your business expenditure is a difficult and time consuming process, but if you follow the tips in this article your business can put its spending priorities into action.