Tips To Help You Reduce Business Expenses

August 31, 2017

Curtailing Operational Expenses

A business operating perpetually will have recurring costs. With technology, bureaucracy, and economy, certain costs will ebb and flow. The best way to make the most of these changes is to get ahead of the “waves”, if you will. Surfing represents a pretty good analogy. You’ve got to watch the trends so you can jump at the right moment and ride them into profitable shores.

This is easier said than done—it is a skill. But over time, you will increase your muscles. You learn to identify trends and use them to save you money. This requires astute monitoring of technological and economic trends, and it involves giving new methods of cost-conservation a shot.

To that end, there are several very “safe” bets today which can really save you some money. Consider merchant services, as an example. One such organization, Dharma Merchant Services, can save you up to 66% on certain transactions; according to the site, it’s possible to see: “B2B sales with level 2/3 interchange reductions.”

If it cost you $1.50 to process such a transaction before, now you can do it for $.50.

Two-hundred transactions like that in a day save you $100, or $36,500 every year. You can do some serious expansion with that capital. You can hire another employee, get into top-tier marketing, expand your operation, fix problems, or buy yourself something expensive. Large businesses can do even more.

Cloud Reductions

Another great reduction tip involves utilizing cloud computing applications. One such application is Clockspot, which allows you to: “Spend less time doing payroll. Automate the stuff you hate! Run payroll reports in just a few clicks.” Basically, through the cloud you can make it so employees clock in digitally from a smartphone, tablet, or computer.

You don’t have to do the calculations, Payroll is more accurately put together, time is saved, and you can further optimize your business. Cloud applications can additionally go beyond payroll, surrogating in-house data centers, surrogating software platforms, and even providing a “floating” desktop accessible from any internet-enabled device.

Additionally you’ve got backup supports more immediately available, curtailing downtime. Between savings in infrastructure, development, and staffing, you could be looking at percentage points off your annual costs. If you can save 10% on operations, and these solutions cost about 1% to implement, you’ve netted 9% savings.

If that were based on a yearly spending of $100,000, then you’d save $9,000. If you’re spending $100,000 on operations, you’re probably bringing in at least twice that—or at least you should be, at the end of the day. Well, when you add savings to that, suddenly your profit margin increases, and then you’re able to scale outward.

Ownership Considerations

Another tip for saving money is to get into a position where you can get beyond a rental situation. Building cheaply can do this, but with the costs of office space, even building a top-tier construction can sometimes save you money in the long-run—but you’ve got to be sustainable enough to persist through the long-run.

Sustainable solutions are becoming more affordable today as well. Solar panels cost about $1 per Watt, if you can get them installed for $2 per Watt, then you’ve got a 5 kWh system for $10k. Realistically, you can probably get it done for around half that, depending on where you source panels.

Get a large enough system and you can totally surrogate grid-based energy, and the costs associated with that utility. Make it redundantly dependable via wind-energy, or water energy if you’ve got a moving source nearby, and you can truly have a sustainable operation, simultaneously upgrading property value.

Combine this with merchant services which diminish transactional costs, cloud computing applications, and time-keeping solutions allowing Payroll to be completed with a few clicks, and your business could experience serious savings.