When it comes to balancing the books of a small business, many owners will look at ways to increase their revenue and improve their cash flow.
While this is an area that many companies need to improve on, it is also important to address your outgoings. After all, there is only so much an organisation can do to increase revenue, without also considering the impact of outgoings on their business finance.
To help, here are three areas where company expenses can be reviewed in order to build a stronger business.
Some of a company's biggest costs will come from ongoing bills, like electricity and office equipment. While this is essential for a business's operation, there is still room to save money here.
Often organisations can save money by shopping around for the best offer for electricity and other essentials. Taking the time to regularly review your ongoing needs can ensure your firm remains profitable.
Excessive bulk ordering
It's always tempting to buy office pens and business cards in batches of 10,000, with most companies offering significant discounts for bulk orders.
While this can feel like you are saving money, the reality is that these orders will rarely be used in a business's lifetime and are likely to be thrown out next time you move. Any unused stock is therefore going to be a burden to your operations and quickly dissolve any savings from ordering in bulk.
Ensuring that you keep orders realistic, especially for slow-moving items, will ensure that you don't fall into the trap of over-ordering on equipment.
Downsize where possible
Some of a businesses biggest expenses will be from areas like office space that are essential, but can also be a big expense if they remain unfilled. The same can occur if your business goes through a restructuring or has an irregular flow of work - you may have greater capacity than you need.
Moving to a smaller office space is just one of the ways companies can downsize their expenses. While moving is always stressful, businesses can also enjoy significant savings on their operations by taking this route.
If your business needs any help with working capital management via a business line of credit, invoice financing or asset financing, contact Earlypay’s helpful team today on 1300 760 205 or visit our sign-up form.
If you'd like to learn how Earlypay's Invoice Finance & Equipment Finance can help you boost your working capital to fund growth or keep on top of day-to-day operations of your business, contact Earlypay's helpful team today on 1300 760 205, visit our sign-up form or contact [email protected].