Invest the time to look at your costs and try to save where you can. You won’t believe the difference it can make.
We have seen first hand how businesses can save hundreds to thousands of dollars by just taking the time to explore ways of keeping costs down.
1. Credit Cards
Now a days the interest rates being charged on your debt is more important than the actual amount owed. A good way to track and lower your cost of debt is to list all your debts. Place your debts in order of those which have the highest interest rate first and so forth. Pay off the highest-cost interest rate debts first and as fast as possible. Negotiate interest rates where you can. Consolidate credit cards to the one with the lowest rate is another way to save.
Prepaying expenses can also provide savings. If you pre-pay January and February expenses in December – this will allow you to take the tax dedcution earlier. If you pay with a credit card (one with a low interest rate) the money doesn’t usually leave your business until January anyway.
Charge expenses on a credit card with a low interest rate, but if possible on a low interest rate card that offers you a benefit. You can utilize cards with low interest rates that provide airline miles or those that offer college savings like Upromise. If you can’t pay via credit card, ask for a discount to pay by check, the vendor will save up to 4% in merchant fees by doing so.
Ask your customers to pay via check instead of credit card. Offer a 1% savings incentive. As mentioned above you will save up to 4% in merchant fees by doing so.
2. Shop around
Get three different bids from vendors to ensure the best deal. Ask for a discount too…. It can never hurt to renegotiate things either i.e. your lease, insurance etc. You would be surprised, to keep your business or to gain your business, vendors will bend a little at least try for 10% discount. It never hurts to try and the savings over a year could be substantial.
3. Save on Shipping
This may sound like pinching pennies here, but trust me it adds up.
- When shipping goods if possible always utilize the lowest shipping rate available such as 2 day or ground.
- Pay bills online to avoid having to pay for postage.
- Mail your invoices out electronically via email.
- Do mailings online via email or Contstant Contacts to avoid paying postage.
The ideas above are just a few cost savings ideas for business owners. Our business coaches can show you more ways to save and increase your bottom line. Contact us today for a Complimentary evaluation.