3 things your business might be overspending on
As a business owner, you understand how important finances are, but there are a few areas where you might be overspending. If you want to track your expenses, consider starting with these 3 areas: the money you spend on supplies, services, and office space.
- When and if possible, try to use cheaper or discounted supplies.
- For a better price, buy your supplies in bulk.
- Look for office supplies that serve multiple purposes. For example, try to find copy machines that also serve as scanners, printers and fax machines.
- Keep stock of supplies you already have to avoid overspending.
- Only buy what you need. Avoid indulging in optional supplies.
- Do your research before spending money on tech issues, since most businesses rely heavily on technology and repairs can be expensive. Seek out low-cost technology options.
- Avoid hiring too many employees by carefully determining how many positions really need to be filled.
- Try implementing budgets for your business and for your employees.
- Keep track of your incoming and outgoing expenses.
- Save your extra money instead of spending it all. Investing is a precautionary measure that helps your business in the long run, in case you have financial troubles later on.
- Avoid expensive rental costs by seeking out smaller offices or cheaper office space outside the downtown core (unless you absolutely need to be downtown).
- Conserve your energy: turn off lights and other appliances when they aren't needed.
- Consider sharing your office space with other small businesses. Budgeting and forecasting — offices that are jointly-owned or rented by various business — are an affordable and efficient way to maintain your budget.
When monitoring your business' expenses, consistency is important. If you implement any new changes to your budget, stick to them. Following through on your commitments will benefit your business. When in doubt, consider consulting a financial advisor or an accountant.
To learn more about managing your finances, check out our Co-working spaces section.