One of the best ways to improve your small business’s profitability is to decrease expenses. It is important that you keep your expenses at a minimum to maximize efficiency. Thankfully, this is an aspect of your business where you have control. Here are four simple ways to cut back on your business expenditure.

Office supplies

Businesses spend a surprising amount of money on regular items such as stationery, ink cartridges and even detergents. If you’re not already buying in bulk, you should seriously consider starting. Most reliable suppliers offer additional discounts and even individual terms if you negotiate. Once you’ve sorted out a good deal, you can stock up on basic items to reduce long-term costs. Don’t forget to keep an eye out for naughty employees pocketing pads and pens for their home office!

Outsource

There are bound to be some office activities that you can source cheaper outside your existing staff and the local employment market. There are a lot of companies that specialize in office outsourcing, which will help you save money. Alternatively, you can consider outsourcing through websites such as Freelancer or Elance; these sites allow you to hire freelancers, usually at a much lower rate than you would pay if you look for Calgarian employees or perform tasks in-house.

Taxation

Another expense that you need to keep an eye on is taxation. You only want to pay the legally required amount of tax, and no more. A large number of small business owners do their own accounting, to save on accountants’ fees, but a professional, like Padgett Business Solutions (a shameless plug, of course)  knows much more about the complexities of taxation than most amateurs. It is often profitable to seek advice from or the services of a professional advisor: the amount we can save your business frequently pays for our time, and more.

Marketing costs

Another area where you can save money is through marketing. By carefully analyzing your results and prioritizing your most profitable marketing channels, you can lower costs and achieve better results at the same time. For example, most small businesses want to run TV ads, but the return on investment rarely makes it worthwhile; the same goes for radio, to a lesser extent. If you’re on a tight budget, try focusing on online marketing tactics and social media. Depending on your target market, you could save a lot of money on your marketing campaigns, while still increasing sales and reaping other benefits.

There are plenty of ways that a Calgary business can reduce its costs. The essential thing is to make sure that your cutbacks do not hinder your service quality, but instead save money that you can use to add value to your business.

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