Tax credits can reduce the amount of tax you pay on your taxable income. Ask them if they see opportunities to increase efficiency and save money – and reward them for their input! Keep in mind, your team is a great resource as your employees work on your systems every day. Cloud computing and eCommerce platforms can replace labour intensive processes – from ordering to tracking to selling. If you’re using old systems or hardware, you could be spending time you don’t have to do business on slow technology. More than ever, technology is a business owner’s friend. If you have loans on the books, work with your account manager to see if it makes sense to renegotiate the terms to reduce repayment amounts or even pay them off sooner to be rid of this monthly expense. The same applies if you have a cash back card. You can turn those rewards into equipment, travel, staff incentives and more. If it offers rewards points, consider using it for both everyday and larger purchases (providing you pay it off before the end of the grace period). By paying your credit cards on time, you can save on interest costs.Īlso, try to maximize your card’s potential. Your credit card can be a very useful payment vehicle – but should not be used to store debt. Look for ways to reduce costs by sourcing gently used vehicles, computers or trade equipment. Alternatively, consider sub-leasing part of your space or try renegotiating rent with your landlord – it’s a commercial renter’s market in many areas right now! If your in-person workforce has been reduced as a result of a remote and/or hybrid work model, consider downsizing to cut down on rent payments. Consider organic, low-cost marketing activities that can boost referrals, as well as targeted social media programs. The best advertising is often word-of-mouth. Consider outsourcing when possible while investing in key employees and critical contractors. If you’re finding it hard to attract the right talent, try to avoid paying a premium in this inflated labour market. See if there are any you can discontinue or even suspend for a time. Run through all the publications, tools and programs you’re subscribed to and figure out which ones you’re making good use of. Given rising costs of goods, materials and labour, you may wish to move away from fixed-price contracts, so adjustments can be made as costs fluctuate. It’s also worth taking a look at your bank statements – consider an annual review (or earlier touch point) with your banker, as the way you use your account may qualify you for savings you’re not aware of. When was the last time you really looked at your utility bill? Can you become more energy efficient to bring it down? Do you have an internet plan that gives you the best bang for your buck? What about your cell phone plan, given your employees may be working off site? A quick call to providers can often result in lower monthly plans and/or greater efficiencies. Bartering for products and services can also help with cash flow. If you’re in a position to pay ahead of schedule, consider taking advantage of this opportunity. Your suppliers may offer incentives for early payment. Are you being as efficient as possible with your inventory management? Watch out for waste that may be eroding profits or excess inventory that is sitting too long, taking up space. Look at both your fixed and variable costs as you search for areas to trim. When goods, services and labour have become more expensive, it’s time to take a hard look at what your business is spending money on and determine where you can cut back. Here are five ways to find hidden savings and maintain profit margins in today’s environment.įeeling the pain of rising operating costs? These ideas can help you counterbalance the economic climate and discover efficiency in your day-to-day business. To offset this trend, businesses have to either increase revenue or decrease expenses. Between inflation, wage increases and rising interest rates, it costs more to run a business for most owners these days.
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