Print

Finance and Insurance >> Browse Articles >> Credit

Finance and Insurance >> Browse Articles >> Loans

Finance and Insurance >> Browse Articles >> Mortgage

Finance and Insurance >> Browse Articles >> Savings

Rate

I Cut Office Costs by $500 Per Month

I Cut Office Costs by $500 Per Month

Learn how one business saved this amount each month by cutting back on non-essentials. Your business can use these methods to decrease expenses, too.

By Tamara Monosoff | Entreprenuer

Learn how one business saved this amount each month by cutting back on non-essentials. Your business can use these methods to decrease expenses, too.

There’s no escaping it: The economy is officially dismal. Many companies are being forced to increase sales and/or decrease costs in order to remain competitive or, in some cases, survive.

That’s why we decided to do a little cost-cutting experiment last month at my business. Our goal: to shave $500 from our monthly business expenses. We made a game out of it, and it was really quite fun. Instead of just canceling services or slashing inventory, our strategy was to cut nothing essential. In other words, we didn’t reduce manufacturing, cut our health insurance or stop backing up our data. Instead, we set out to cut costs in ways we’d never even notice, by continuing to get the same essential services or products for less. We approached it like a game, kind of like a scavenger hunt for savings, and we succeeded in cutting about $470 per month. That’s $5,640 per year, which could cover a few mortgage payments or about four new laptop computers.

I’m sharing this information because these strategies can apply to any business. Most of our cuts were to core services that almost every business or household requires. Keep in mind, your suppliers and their competitors are also fighting for your business. Start by looking at your check register or online bill-pay records for a couple of months. You may be surprised by what you find. Some costs will have increased, and some may even be for services you no longer require. Here are some areas where we found savings:

Telephone bill. Whether you have a home based business or a separate office, it can pay to re-examine your telephone plan. Look closely at what you’re being charged for. Your plan may have been reasonable when you set it up but may no longer be competitive. With online search tools, it’s easy to shop around for “discount long distance.” Consider combining your phone, internet and cable services for bundled savings. Also be sure to examine any added calling features you’re paying for but not using, such as call forwarding, voicemail or a toll-free number that’s barely used. Of course if these services are integral to your business, it may not be worth cutting them, consider each expense on a case-by-case basis. Also be sure to ask what current promotions your provider may be offering that you’re eligible for. Even if you don’t want to change providers, your current provider will likely be more responsive if you can present a better offer from a competitor.


Poll: How do you feel about crying at work?

Poll: How do you feel about crying at work?