2 minute read
Financial Figures
5 tips for reducing small business costs
People often believe they’re saving money with penny-pinching or quick-fix approaches that wind up costing a lot more in time, money, and opportunities than they know.
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These five tips will help you be smarter, wealthier, and less stressed out as you strive to make your small business more successful.
1. Eliminate credit card debt. One of the most expensive ways to borrow money is with credit cards. Consider securing a line of credit for short term needs or term loan to pay off all credit card balances. Better yet, get help with billing so you’re not floating out-of-pocket expenses on client work.
2. Create a budget. Few small business owners take the time to craft a yearly budget and review it against actuals each month. If you don’t know where (or whether) your money is coming or going, you’re at a disadvantage.
3. Rethink office space needs. The pandemic accelerated a shift that was already coming. Now’s the time to reassess your needs. Can space be shared with sales reps who are mostly on the road or employees who are spending some days working from home? Is it time to downsize? Maybe just-in-time isn’t working with production delays and you need more warehousing square footage? “Business as usual” isn’t what It used to be.
4. Refinance loans or lines of credit. Borrowed money is cheap today. If your loan is more than a few years old, ask your bank if they can do better or shop around for a better deal to pay off current loans. Check on lines of credit too.
Banks vary a great deal in what they charge for this service so, again, shop around.
5. Contract out specialty work. Most small business owners delay hiring their first professional service provider. It costs a lot in time, frustration, and money when you try to do everything yourself. Many regret not delegating sooner after a first contractual hire. Whether it’s legal, financial, or marketing help, the right expert can save and/or make you money with better and faster results.
FINANCIAL FIGURES
By Michael Shelton
Executive Summary:
Being a small business owner is hard. It’s even harder when you try to do it all.
Reconsider how you’re handling business operations. Now, more than ever, it pays to be smart and adaptive. Consider some of these simple ways to make business life easier and more rewarding. Schedule a free strategy session with me if you need help.
Many regret not delegating sooner. ”“
Michael Shelton is a financial retirement counselor. Reach him at michael@discover360 Financial.com
