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Many businesses are facing a raft of economic challenges. Customer purchasing behavior is changing, which can mean more caution and less spending. As a result, many businesses are noticing a drop in revenue that requires them to address their costs and tighten their belts.
If you’re in the process of reviewing your expenses to see where you can cut costs, here are five of the many expenses you might not really need:
Large Business Premises
A large business premise can make sense from a reputational perspective, but it’s not always the best option for your wallet. If you don’t believe your current building is the most appropriate and cost-effective, you can find commercial real estate for rent that suits your specific needs by aligning with a property manager or a property company.
Since many companies now allow employees to work from home and employ remote workers, you may also consider downsizing. Smaller premises typically mean lower rent payments.
In-House Employees
As valuable as your team is and as cherished as your individual employees are, the need to cut costs may have you reviewing their importance in your business. You might question whether specific positions need to exist or whether you can outsource some of the roles to remote employees.
You may even find that you can hire contractors or freelancers to complete tasks that you may otherwise have hired an employee to take care of.
Outdated Advertising Plans
How we advertise our businesses has dramatically changed over the years. In the past, we had the choice of mailbox leaflets and newspaper and radio ads before transitioning to TV ads. Data through these platforms wasn’t always measurable.
Now, we have more precise and data-driven advertising options at our disposal, like social media, influencers, and search engines.
If you’re still relying on outdated advertising plans where you can’t always measure success, start exploring more modern, thorough, and cost-effective options. Social media, which lets you target specific audiences and set your budget, is expected to make up 19% of companies’ marketing budgets within five years.
Business Trips
In the past, if you needed to discuss business with a vendor, client, or associate in another location, you needed to set aside precious time and travel to them. This could come at a great cost with airfares and accommodation, not to mention lost productivity.
The digital age has given us the ability to save thousands of dollars. Rather than travel to see people, we can use video conferencing software, of which there are many options to choose from. You can simply sit at your desk, load the software, and talk to people as if they were sitting right in front of you.
Premium Software
Many different software programs are designed to make our everyday working lives much easier. Over time, we can end up with multiple programs on our computers, paying several subscriptions, even if we don’t use all their best features.
Take stock of the programs you have and use. Cancel the subscriptions of the ones that serve no purpose. If you only use one or two features on multiple, consult a software expert to see if a custom program can be created to cater to most of your needs to save money and hassle.
As a business owner, there’s no way to avoid business expenses, but you can certainly have less than you do. Review your biggest costs—premises, employees, business trips, and advertising—to see if you can cut costs and enjoy a healthier bottom line.
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