Ways to reduce
OVERHEADS If you’ve been reviewing your business’s financial position and are looking for ways to improve your cash flow, one of the first things to look at are your expenses. As your business grows, so will your costs, but there are things you and your employees can do to keep them down as much as possible and so improve your cash flow. It’s important not to rest on your laurels. Continually thinking of ways to reduce your overheads is essential for a healthy cash flow, so conducting regular reviews of your business expenses should be a regular task.
Reducing expenses
Although there’s no getting around paying for things like phones, internet, power, office equipment and rent, there are ways to keep these costs to a minimum. Review these expenses and consider the following:
Communications – with fierce competition in this
industry, it should be easy for you to negotiate a better deal for phone and internet use. Talk to your current supplier about a new deal and if they won’t come to the party, shop around for a new one.
Energy costs – some of this is obvious, such as
turning off things when they’re not in use. Green energy options are worth looking into, especially if you’re shopping around for a new energy supplier.
Rent – if your business is not client-facing, you might
consider working from home. Not only can you claim your home office as a business expense, but not paying commercial rent is a huge saving. More and more businesses are becoming virtual – it’s worth considering if yours can be as well.
2020 May Issue | 37
