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3 clever ways to cut your business expenses
American entrepreneurs are in for a huge year. Nearly 4.5 million new business applications were filed in 2020, the highest number on record and up almost 25% from the year before.
Whether you’re starting your own company or have been your own boss for years, the fact doesn’t change: The money you bring in has to exceed what you spend. In other words, when you own a business or work for yourself, profit is king.
You can only keep your (figurative or literal) doors open if you’re in the black. We put together three clever ways to keep your finances in check, brought to you by our sponsor LinkedIn.
1. Regularly review what you’re paying for
In business and life, every little thing adds up. When you’ve amassed a mountain of services, it’s easy to forget some old programs you pay for but don’t use. Maybe you updated your financial software but forgot to cut off your old one from billing you each month.
Each quarter, go over your business expenses to ensure you’re only paying for what you need. If it takes a lot of time to collect all the receipts, that’s a sign that you should update your organizational strategy.
Nope, you don’t need to spend money to get a little more organized. Just open up a spreadsheet. Spreadsheets help you visualize everything you’re spending money on and pick out any outliers.
You should also analyze everywhere your money is going. If you’re overspending on a service you no longer need, cut it off. Make sure you’re only paying for useful tools that serve your business.
2. It never hurts to ask
For all the services and recurring fees you keep, do a little digging. Think about how you can barter or at least get some money knocked off your monthly bills.
If you’re hesitant, don’t be. The squeaky wheel gets the grease, so send out an email asking if there are discounts or any ways you can cut your costs. You’d be surprised to see what you get if you just ask. Be kind and transparent in your email.
The best way to get results is to reach out to a specific person rather than a general email. When you send a message to someone’s personal email account, you’re more likely to get a response.
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