Trimming unnecessary expenses is something most businesses did in earnest to survive the economic downturn that began earlier this year.
While revenues have started rising again for some businesses, other companies continue to be mired in the effects of this year’s pandemic.
If you’re still looking to cut expenses, here are some areas where your business may be overspending.
Interest Rates. If you have credit cards, banks will often listen to a request to lower your interest rates. This is especially true if you’ve been a long-time, loyal customer who has always made on-time payments. Also consider asking your banker about refinancing other debt, such as installment loans or revolving lines of credit, to a lower interest rate.
Telephones. Many companies are relying on the same hardware and service they bought 40 years ago, which can cost plenty to use and maintain. Consider transitioning to a Voice Over Internet Protocol (VoIP) service that can easily integrate with mobile phones and other electronic devices.
Internet Service. Similar to your telephone service, it’s easy to sign up for internet service and forget about it. If it’s been more than one year since you’ve spoken to your internet service provider, get on the phone and ask about different options. Maybe you’re spending for more bandwidth than you need or unnecessary add-ons like a turbo boost.
Data Storage. The cost of storing data in the cloud has become extremely affordable over the past 5 years. At the same time, many businesses overestimate the amount of storage capacity they actually need. Consider doing an annual audit of your storage needs and asking your provider about different capacity levels if you find you have ample, unused storage space.
Completely chopping expenses from your income statement isn’t the only way to save money. Keeping certain expenses but temporarily dial it back is another viable option that can your business money without entirely eliminating much-needed services.