As a small business, the costs / expenses we incur in our business is key. If you are spending more than you are bringing in, then “Is it time to cut costs?” Helpful Tip #9, is a quick fun read.
You may not always be able to measure actual expenses against planned expenses because things can change. However, you can review your expenses such as software you are using, to see if you are truly using it or if you can you let go if you are not using it much at all.
You may be able to find vendors that only charge you for what you use but, honestly, I’ve looked, and I didn’t find much and what I did find, wasn’t really what I needed for my business.
It can be difficult to cut expenses
It was for me anyway. I thought I needed everything I was paying for when, I did not. I had also restructured my services, which helped me decide what I needed and what I didn’t.
I was able to cut my expenses by $300 a month. Big savings for a solopreneur.
What is your biggest expense?
Some studies show payroll, which might be true if you’re a small business with employees. I tried a payroll service to pay myself and it cost me more to do that than to pay myself directly.
Sometimes what you purchase may not be what you really need but you may not know until you try the product or software you bought. And that’s ok but if you find it’s not what you want to remove it asap before you are charged again.
How do your reports look?
If it’s been a while since you looked at your expense report, perhaps take some time to go through it. Ask yourself if you really need this or that for your business. There may even be moments when you say “what is this? What am I paying for”. That happened to me ha-ha. So, let’s bring down your expenses and put the savings elsewhere or in your pocket.
Basically, taking a little time to review what you are spending vs what you are bringing in will save you money in the end. If you find you haven’t used a program/software or whatever it is, in a year or more – toss it, even if you used it once for a project – do you really need it?
Whatever you decide to keep or cut…
…it helps eliminate you paying for something you don’t need. Just a reminder that by doing this myself, I shaved $300 off my monthly expenses.
