4 Business Costs That You Might Be Able to Save Money On

Even if you’ve only been running your business for a short amount of time, you’ll know all too well that running a business isn’t free. There is always going to be multiple business expenses, and some will be significantly larger than others. It’s important to make sure you’re prepared for the larger expenses so that you can plan out your finances properly, all while making sure you’re saving as much money as possible too. If you fail to do this, you might risk falling into big financial problems which could threaten your business.

The problem here is that each business is different; one expense for one industry might be significantly larger than the next. So, here’s a list of the most common business expenses so that you can be aware of them and most importantly, prepare yourself for them.

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Office costs

This is a cost that most businesses will see a sizable chunk of their expenses go towards. And, even if you own the building you operate from, there’s a good chance you still have to find ground rent, make mortgage payments, or even pay for the building to be maintained so it’s always in good condition.

If you’re renting your office space, there’s not much you can do about those costs, but there may be a few things you can do instead. First of all, you could consider moving to a smaller office in a less than prime location. While you may lose those benefits, you’ll be paying less rent, which could put some money back in the business pot for other important business expenses.

Alternatively, you could consider switching to an entirely remote business if your model allows it. Millions of businesses successfully operated during the pandemic with every staff member being at home, so there’s no reason it couldn’t work for you now! And, it won’t just be rent you’ll be saving on either; you’ll save on other aspects like energy costs and supplies too.

Employee costs

Employees are another sizable cost that most businesses have to endure. You’re paying for their monthly salary, and there’s a good chance you offer bonus perks too. Again, there isn’t a lot you can do, but there are a few options you could consider that impact your business expenses.

Using freelancers rather than hiring. You’ll only be paying for the work that’s been done, but you don’t have to worry about bonuses or other employee expenses. You can easily find freelancers on platforms like Upwork, Fiverr, or People Per Hour.

Upskilling your existing employees so that they can perform multiple roles is another idea to consider. Rather than hiring a whole other person, you’ll simply be adding to an employee’s list of jobs. Of course, you’ll need to make sure they’ve got the wriggle room to do it, but it could really help reduce costs. 

The good thing about upskilling is that it’s an investment into your business that’s going to pay off in the long run. And, if you’re using certain online study courses, you can often get Continuing Professional Education credits that can take them even further.

Marketing costs

Even small businesses can benefit from spending a decent amount of money on marketing. And, while some things can be done for free, sometimes you need the exposure that paid campaigns can offer you.

While you should be doing as much of the marketing in house and for free, take the time to consider which campaigns are going to be worth investing in. You should also make sure you’re making use of any free social media tools that could help expand your reach without ever having to spend a penny. That way, when there’s something you really want to promote, your business isn’t being left out of pocket.

Vehicle costs

If your business uses vehicles for any reason, those costs can soon mount up. Some businesses use company cars for their employees to attend important sales meetings or entice new clients, and if that’s the case for your business, you should consider buying used cars for them to drive instead. You might even benefit from asking employees to use their own cars and paying for their transport costs.

If your business vehicles are for deliveries or transporting certain goods to partners, you should also look into used vans to save yourself some money there too.

Finally, there are some business expenses that are simply unavoidable, but there are always ways you can save some money or find alternatives that are going to be much more financially friendly for your business.