My new program, Tweak It and Profit, focuses on small changes and additions you can make to your business to increase your profits. Most people think that adding more to your offerings is the best way to earn more.
After years working on my business, I realized the more money you save, the bigger your bottom line. It’s the combination of making more from what you already have and saving money when you can that makes a business more profitable.
Here are five money-saving ideas you should already be implementing in your business.
- Reduce, reuse and recycle. When it comes to office supplies and equipment you can spend a lot of money. A simple desk chair can cost hundreds. However, a used desk chair or a repurposed one can cost just a few dollars. I get a lot of big ticket items I need for my office at a local used office furniture store. And don’t forget to reuse items. For example, you can print on both sides of your printer paper. A PDF e-book can turn into scratch paper for planning purposes. I give used one-side paper to my kids to use for their ‘art’ projects. Take a look at the items you have around you. What can you reduce, reuse and recycle to save money?
- Get rid of your business credit card. If you don’t pay off your monthly balance on your business credit card, you’re paying interest. And here’s the thing… if you have to pay interest on something, you couldn’t afford it in the first place. The money you’re paying in interest could be used to grow your business. Instead it’s helping the bank grow their business. Switch your credit card to a debit card. It offers all the same advantages a credit card does. It makes online purchasing a snap. However, you won’t have to pay interest or monthly fees.
- Analyze your existing merchant and bank accounts. When you opened your business you may have opened a merchant account. This would enable you to take credit cards. You may have also opened a PayPal account. Take a look at the various accounts you have and assess if there is a way to save money. For example, can you close your merchant account and open a merchant account with PayPal? You’ll consolidate your accounts and perhaps save money each month. Also take a look at your existing bank accounts. Some accounts charge a hefty fee each month. There are free checking and savings accounts you can open for your business. IF you’re paying a lot in fees it’s worth the switch. (And another thing I look at is if the bank supports small businesses in some way. Mine offers free seminars on a variety of topics and allows local businesses to offer discounts to their customers, which they promote in their monthly newsletter and online.)
- Analyze your outsourcing plan. Do you outsource? Is your outsourcing plan as streamlined as it can be? For example, you may have one contractor managing transcription and another contractor managing your affiliates. Would it be cheaper to hire one person to manage both tasks? Take a look at your current outsourcing practices and make sure they make financial and business sense.
- Are you using the right technologies? Let me share an example to illustrated the point. ABC company has the best Smartphone on the market. The owner loves her Smartphone and all of the wonderful tools and applications it offers. The phone costs her $60 a month, not including her $60 unlimited data fee. However, the owner of ABC company works from home. She’s never more than thirty seconds away from her laptop. Thus email and planning and organizing tools are always available on her computer. This essentially makes her Smartphone nothing more than an expensive toy. She could get a $20 a month pay as you go phone and save herself $1200 annually. This story is a common story. We love technology and we love to have the latest and greatest even if it isn’t important for business success. Analyze the technology you’re spending money on. Are you using it? Is it vital to the success of your business? If not, get rid of it.
Saving money is usually a simple process of taking a look at your expenses. What can you improve or eliminate? Remember – the more you save, the more you make! Want some help with finding savings – and more profits – in your business, without a lot of work? Then check out Tweak It and Profit. This month I’m featuring my go-to resource where I get high quality graphics, videos and websites done for only five bucks a pop! Go to http://TweakItAndProfit.com