3 Ways Businesses Can Reduce Costs

The goal of most businesses is to make as much money as possible while giving their clients the best quality product or service possible. (It should be anyway.) However, in order to make money, you have to spend money.

The goal of the game, here, is to make more than you spend, but when a company gets down to brass taxes, sometimes they find that there is a rather large leak in their profits. As that is a fact for many businesses, the following suggestions on how to plug some of those leaks might come in handy.

Property Taxes

Some of you might still remember when the last state added sales tax. There are only three states that still haven’t levied one. Along the way, most of those states have found it useful to raise the sales tax with the cost of living, as well.

There aren’t many people that celebrated those “accomplishments.”  Property taxes are no different. Property taxes of any type are a bother. Commercial property taxes continue to rise with each year. It is imperative that you go through the trouble to make sure that you are being charged the proper amount.

Don’t make a habit of taking the first appraisal you come across. Most places appraise your property with a list of general guidelines. This does not give you any credit for the specific details of your company. If you have to, you can appeal the decision. Doing so has resulted in thousands of dollars in savings on several occasions.

Manage Your Employees Better

Let’s face it. Without your employees, the business just doesn’t run and you have to pay them for their contribution. However, there are ways to save money while managing their effort. First, we all know the value of a skilled employee, but the more experience they have, the more they cost you.

Try hiring some entry-level workers who have the same level of schooling, but don’t quite have the same level of experience. Not only will you save money on salary expenses, you will make a way for the up and coming in the field.

Next, make a shorter work week possible. Many of your workers could probably use this anyway but are afraid to ask for it. By making it available, you will save money by not having to pay full-time wages and the employees who need the job, but also need the extra time will be extremely grateful.  

Go Green

We’re sure this is not a new idea to you, but it tends to be a very useful one if taken advantage of. Take a tour through your company’s building/s. Take note of everything that has a more cost-effective, efficient alternative and then put a plan into action to fix the problem.

Replacing your lights with compact fluorescent bulbs could save you over half of your electricity bill. Another green alternative is to go paperless. With the invention of flash drives, the internet, and the Cloud there really is no reason to keep paper copies of much and copy paper isn’t the cheapest thing on the planet.

Lastly, recycle. Recycle bottles, ink cartridges, the paper you do use, cell phones, etc. Many places will give you money for your recyclables. Another way to recycle is to replace old office furniture and equipment with used pieces. Not only will you save money buying used, you will keep the landfills from getting fuller by giving that piece of furniture a new home.

Running a business is an adventure, to say the least, but you don’t have to go broke living it.

David Jackson

David is a personal finance expert, a professional male model, and an entertainment writer.