Are you working hard to keep your business running but feel like expenses are getting out of hand? Sometimes as a business owner, you may lose sight of the bigger picture as you work hard to get every detail right. Working with individual clients and customers, you may even feel you need to cater to their every need. The small business tax accountant would have you know this is unnecessary, even dangerous to the success of your operation. Instead, they would suggest these ten ideas to help get you from where you are to where you want to be.
Optimize Production Spending
Your small business needs to run as lean as possible. If not, as the small business tax accountant explains, then your operation may not be able to continue. Don’t waste limited capital on anything that doesn’t make the business money. Do you have extra space in your office or warehouse? Lease it out and you could gain a valuable business connection while simultaneously reducing your overhead.
Become More Picky
Time and again, small businesses that spend too much time focusing on the wrong things end up losing out on important business opportunities. Instead of accepting all the work that comes your way, look at what kind of work you want. If, for example, a client makes a request but the outcome is less than profitable, you may be better off reconsidering the bid altogether. Being picky doesn’t mean only doing work when you want, but it does mean you need to choose the best options. Remember your clients and customers are coming to you because they trust you will provide them with the best quality of products and services.
Perform Industry Analysis
As a business owner, you should constantly be evaluating your competition. As you look at similar size companies in your industry, take notes about what they are selling. If you can tell specific products are selling more frequently than others, then you should sell those products. Make sure that you are working to improve your competitive edge, day by day. Don’t let your competitors get ahead of you as you in your niche. You may need to cut your product or service range if you aren’t selling enough units.
Renegotiate Service Providers
Whether you have a brick-and-mortar store or you just work from home, there are several things you can do in order to gain back control. Whether it’s talking with your janitor or window washer, you can make a deal. Better yet, consider getting multiple quotes from other providers and compare your pricing. If you find that you are spending higher than average, you need to make a change as soon as possible. Don’t let service providers take advantage of you because you failed to do the homework on your own.
Shift Your Marketing Plan as your Talk with Your Small Business Tax Accountant
You should really make an effort to adjust your marketing budget to something that you can maintain. Spending too much money on marketing happens all too often in small businesses. Instead, learn about local groups and practice your word of mouth marketing. While uncomfortable for some, this can help you gain important networking opportunities for your growing business. At a critical point between growth and remaining the same, your small business can really benefit from real face-to-face connections. Don’t miss out on this opportunity and take advantage of it now.
Keep Insurance in Check
High insurance rates can drive your overhead costs up through the ceiling. Instead of settling for exorbitant rates on your insurance, you should make an effort to go ahead and work a deal with your current insurance provider. If they are unwilling to make adjustments and reduce your rates, then speak with other insurance companies who provide the policies you need. Find a policy that has the coverage you need while still keeping costs down.
Keep to your Budget as taught by Small Business Tax Accountants
Ayn Rand, Russian born writer and philosopher once taught, “Money is only a tool. It will take you wherever you wish, but it will not replace you as the driver.” At the end of the day, you will need to take responsibility for your business budget. As the owner, you have the final say to determine what you should spend money on. Don’t be bending over backwards just because your clients and customers demand something new or unusual from your normal product and service listing. Instead, make an effort to show that you only offer a limited set of products and services. It could even help to show that you can move on just as easily.
Cut Back on Perks as Suggested by Small Business Tax Accountant
Making sure that you don’t keep wasting money on perks is essential to keeping your business alive. If your employees are only there for the perks, they may not be worth keeping at your operation. You need people who are passionate about your products and services. Those are the ones who will likely produce more while still taking the same pay as someone with less interest or passion in the product or service.
Small Business Tax Accountant Recommends Freelancing and Outsourcing
Freelancing and outsourcing are more than simply an alternative to hiring full time employees. This sort of short-term work can be beneficial for completing tasks that don’t require full time employees, but you don’t have the time in your schedule. Instead, you can find someone who specializes in what you need done and pay them directly for their work. For example, some popular options include virtual assistants, graphic designers and copywriters. For many, this means getting phone calls answered, new product label designs and marketing materials ready to go. No more waiting until the clients and customers are gone before you can start working on your stuff. Instead, you’ll be able to tackle multiple angles while giving attention to the people right in front of you.
Turning Off The Lights
While this may seem simple to some, there is something to be said for turning off the lights. In the case of your power bill, reducing the usage over time can have a sizable impact on your overhead expenses. If you leave machines running after-hours, then you risk raising your rates. Instead, it’s recommended to power off non-essential equipment and lights until the following day or the next use. Minimizing uptime on these machines can help you experience longer service lifetime while freeing up your budget.
You should be sure to tackle your business spending problems and maintain that as you move forward. Speak with your small business tax accountant about making plans for future investment and how your spending could be affected.