Many small businesses close each year. The US Small Business Administration has stated that between, “March 2019 and March 2020, 1.0 million US establishments opened and 993,809 closed”. The number of small businesses which closed was 843,229, making up almost 85% of all business closings. One of the best ways of avoiding being part of the 85% is to cut down on unnecessary expenses. This will increase cash flow and benefit your business overall. One of the first places to cut down on expenses is in the office department. Here are five ways that you can save money on your office expenses.
1. Buy Office Supplies Strategically
There are many ways that you can save on all your office expenses if you purchase them strategically. These are: watching out for sales so you can buy your office supplies at better prices, particularly for big expenses such as large appliances, buying in bulk so that you can maximize the value you get per dollar, purchasing second-hand goods at much lower prices than brand new ones, opting for more affordable options on office supplies and knowing that you can deduct expenses which are necessary for your business from your tax return saving you on tax every year.
2. Utilize a Business Credit Card
Business credit cards have a wide array of utilities for a business such as being useful for establishing business credit and allowing employees to easily make business purchases. These credit cards can also be used to save on office supplies as some of them offer benefits for purchases of office supplies. These benefits include cashback and discounts when spending on supplies for your business. In-Store credit cards are also useful for stores that your business frequents as you can derive similar benefits. These benefits allow your business to save on ordinary expenses and maximize returns.
3. Consider the Viability of your Office Space
The coronavirus pandemic has shifted our perception of many things and one of these is the workplace. Many businesses have begun to question the necessity of office space altogether with the rise in the viability of working from home. This has also been shown to increase productivity. With smaller office space, you can save on your monthly costs and use this money to further develop your business. You can also consider sharing an office space with another small business to further reduce costs and save on shared expenses like printers and internet connectivity. Another way of saving on office space is subletting your office space to another business for additional revenue.
4. Negotiate
You may think that a price is unchangeable but many of the prices you pay are subject to negotiation. This is particularly true when you reach out directly to a vendor or supplier as you may be able to negotiate better prices and more favorable terms. Furthermore, refinancing any loan which your business may have is an excellent opportunity to negotiate better terms such as lower interest rates and lower monthly payments. You never know when you may be able to get yourself a better deal with a bit of negotiating and it never hurts to try.
5. Budget Better
Budgeting is a reliable method of cutting down costs. Setting out exactly what you are going to spend on office supplies will better enable you to make cost-saving decisions. This will also provide a framework for the manner in which the budget is to be spent, allowing for a more convenient and efficient way of distributing resources. This will also force an evaluation of which office expenses are necessary and which are excessive. An evaluation of this sort will also bring about mindfulness regarding the necessity of any office expense.
Final Thoughts
There are many ways to shave down on office expenses and avoid unnecessary expenditures keeping your business profitable. Five of the best ways to save on your office expenses are: strategically buying office supplies by waiting for big sales and buying in bulk, using a business credit card or instore credit card to get cashback rewards and discounts, reconsidering the viability of your office space and transition to a smaller office or a work from a home office, Negotiate with your suppliers and vendors and consider refinancing any loans which your business may have for more favorable terms and make complete budgets for office expenses and stick to them.
