As business owners, how much profit we make is key to whether our business is viable or not. There are several ways to determine if your business is successful but ultimately, if you are not making a profit, most of us will struggle to maintain a business at a loss.
Knowing how much money is coming into the business is important. Reducing our business costs can make a difference to our profit margin.
Here are a few ways you can minimise your business costs:
Business Record keeping.
One of the key things when looking at minimising our business costs is knowing what we are paying out. Having an accurate record of everything we are paying out for is very important. Not only can you see how much you are spending but it could also save you money on tax.
Reflect and review.
Take time to think about what you could cut out. What has worked and what hasn’t. For example, if you have been using multiple ways to market your business and only a couple of them have worked, do you need to be paying out for all of them? Are there other ways to market your business that is free e.g., through social media.
Shop around for the best prices and quality.
Trying to find the best price for things can make a real difference. Although, the best price doesn’t necessarily mean the best service. You need to weigh things up and prioritise what it’s worth cutting back on. For example, if you shop around for business insurance and find several companies offering what you are looking for, look at their reviews as well as at their price. Some companies charge more than double for the exact same insurance. Also, consider if you actually need such comprehensive cover and that you are not over insuring yourself for no reason.
Review business debt.
Taking on a business loan or credit card will add to your business costs. Not only do you have the pressure of paying the monthly back but the added interest really adds up. Think carefully whether you truly need to take out business debt and if you do, shop around. Paying 5% APR interest rate on a business loan could save you hundreds in comparison to paying 20% APR on the same loan or a credit card.
Are you using your time wisely? Are you making the most effective use of your time? If not, then this could be costing you money!
Hire an accountant to save you money.
Having a good accountant could save you a lot of money, we know how to reduce business costs and utilise your allowable expenses, we work to maximise your cash and profits.
If you are considering hiring an accountant for the first time or switching from your current support, why not book a free discovery call today; https://calendly.com/pauline-healey/discovery-call