4 Effective Ways for You to Effectively Cut Your Business Expenses

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Did you know your business insurance costs go up, on average, by 10 to 20 percent annually?

Your small business is being squeezed constantly by increasing expenses, which means that controlling costs is more important now, than ever before. If you are searching for ways to reduce insurance costs, and other costs in general, use the tips and information found here.

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  1. Reduce the Cost of Your Office Space

 Depending on the commercial real estate market for your local area, you may be able to find reduced prices if you move to a less expensive location or negotiate costs with your current landlord. Even better, if you don’t really need a commercial space, consider operating from home, or you can go mobile. This is a great option for bookkeepers, plumbers, repairmen and more.

In addition to reducing how much you pay for the actual office location, you can also reduce your insurance costs, utilities and taxes.

  1. Implement Smart Safety Practices

Safety in the workplace is of paramount importance. Not only do you face fines from OSHA and other organizations if you have a workplace that is deemed unsafe, but if your workers are hurt, you have to pay more for workers’ compensation coverage, time away from work and replacing workers due to illness or injury.

Take steps to find and identify potential hazards and then fix them. You can even utilize the help of the pros. For example, the Fall Protection Pros can help you safeguard your workers from all types of potential falls. In the long run, not having accidents and proving that your workplace is safe can help you save on insurance and other related costs.

  1. Reduce Your Staffing Costs

Does your business have periods that are slower than others? If so, this is completely normal. However, it also presents the perfect opportunity for you to save some money. Today, many employees are more than happy to take a bit of time off (unpaid). Just discuss this with them and you may be surprised about who is open to the idea.

Hire family members to work your business, when possible. Involve children, your spouse and anyone else who may be interested. Not only will this give these people something to do, it can also help to keep your business money in the family.

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  1. Reduce Your Vehicle Expenses

Do you have a contracting or service business that uses a vehicle? If so, there’s no question that you likely pay a “pretty penny” to stay on the road. Between fuel, maintenance and services costs, there’s no questions things may get out of hand.

One way to reduce costs is by purchasing a vehicle used. You can usually find excellent used vehicles that will be ideal for your business, and cost less initially. If you aren’t sure what type of vehicle is right for you, you may want to use the U.S. Department of Energy (or similar tools) to help you calculate the payback period of the vehicle you choose.

As you can see, there are several ways that you can reduce your overall business expenses. Be sure to take some time to figure out where your money is going and then brainstorm ways to reduce these costs. In the long run, making small changes will add up and help you save quite a bit of money.

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