A new year means a new opportunity to review your business expenses and manage your bottom line! Often when reviewing expenses, small business owners fixate on the large numbers and overlook the smaller costs that can add up over time. Kick off 2017 with a complete review of your business expenses, and focus on these five areas to save your business money in the coming year:
1. Utility Providers
Have you reviewed your phone, internet, security or electricity bill recently? Are you receiving the lowest rates or paying unnecessary fees? Every year I review my phone and internet bill and seem to uncover unnecessary monthly charges or a new bundled package at a lower rate. The process is painful but I have saved as much as $30/month both on my cell phone and business land line — a small amount that adds up over time. It is also worth looking into green energy plans that may help you to reduce your monthly electricity bill both at your business and at home.
2. Payroll
Are you operating as lean and efficiently as possible? Every time an employee leaves your organization, use it as an opportunity to reevaluate your labor and responsibilities. Instead of filling a vacant position, could you reduce headcount by distributing additional responsibilities across current employees? Or, could you take on additional responsibilities that will help to advance your business and save you money at the same time?
3. Marketing
As the marketing landscape becomes more viral and social, are you evolving with the times? It is easy to hit repeat on last year’s marketing efforts but is it worth it? Take this opportunity to evaluate current marketing trends and re-evaluate your current marketing strategies. What is the ROI for the campaigns that you have invested in in the past? Are you taking full advantage of social media and other lower cost methods to get the word out about your brand?
4. Vendors
Are your suppliers offering the lowest price in the market? Have you met certain thresholds in the last year that would make you eligible for better pricing? Can you change payment terms based on your payment history in the last year? Conduct a full analysis of your key vendors to determine the areas where you could be saving money. I made a switch in payroll providers, which led to a 40 percent savings in payroll processing. With 26 payroll periods in a year, the savings really add up!
5. Outsourcing
Are there administrative or specialized tasks that you are doing in-house that you can outsource for cheaper? Or are you currently outsourcing specialized services that you can find even cheaper with an Internet-based provider? Sites like Fiver and Upwork provide design, web, graphics and even marketing services at a fraction of the cost of what many are used to paying for these services. Several business owners use virtual assistant services for social media, blog writing, excel work, accounting and most are significantly cheaper than what you would pay someone on your staff to do.
Make it a New Year’s resolution to analyze your expenses. And don’t overlook those minor expenses, which can add up and save you money over time. When it is your own business, every dollar counts!
Anjali Varma is the “The Modern Mompreneur”, her FREE Mompreneur Tribe Facebook group, blog, and YouTube channel serve as resources to connect, inspire and educate mom entrepreneurs. Anjali is a consultant to mompreneurs and offers a Marketing On A Shoestring Budget e-Course to help entrepreneurs market and get PR for their business at little or no cost. She is also the owner of Kidville Bethesda, an enrichment facility that offers classes, retail, haircuts, and birthday parties for newborns — 6 years old. You can find Anjali on Twitter and Instagram @anjvarma and join her free Mompreneur Tribe Facebook Group.