Worth Your Time: 5 Ways to Trim Monthly Business Expenses

5 Ways to Reduce Your Monthly Business Expenses (Featured)

Published by Marc Freedman on March 6, 2019

Every business depends on products and services to get their work done and serve their customers well. You probably have dozens of vendors you pay on a monthly basis. Everything from rent to phone service, email to HR management tools, supplies and so on. Your monthly expenses can be steep – but you can’t run your business without them.

You can, however, trim them back. You might be surprised how much savings can be had if you have the knowledge, expertise – and the time (oh how much time) to research competitive rates, analyze your usage patterns and needs, and negotiate the very best deal on each.

Here are five of the most common places to find savings in your monthly outlays:

  • Merchant Fees: Make sure you are using the correct code for your specific businesses. If you aren’t, you could be paying extra interchange fees. It’s also important to make sure you aren’t using a tiered structure. If you are, call your bank to change it as soon as possible.
  • Health Insurance: Is traditional insurance the best use of funds for your company? Consider switching to a self-insured plan without any additional risk.
  • Data/Telecom Services: Phone lines are dead. Are you still paying for old phone lines in your office? If you are, you shouldn’t be. Switch to a service provider that combines your phone and internet data services. Contact your landlord to find out the service providers available in your building.
  • Software Services: Technology changes rapidly. Software subscriptions that you subscribed to last year might be outdated by now. Check to see who – if anyone – is still using certain subscription services. If nobody is, it’s probably time to say goodbye.
  • Vendor Services: How long have you been using your vendor or service provider? Five years? Ten? Do their fees ever go down or is there a constant price creep? If you answered yes to any of these questions, it might be time to have a conversation with them. Ask yourself if their performance is great. If it isn’t, interview some new providers and compare their services and products. You may be shocked to find a better deal.

We put together a worksheet for you to work out a rough estimate of how much money you could save every month. Check out our Savings Potential Worksheet. You might be surprised what’s in it for you.

Would you like to learn more? We are easy to talk to.

Drop us a line at talk@expensetoprofit.com.