5 Tips to Trim Expenses
5 Tips to Trim Your Company’s Expenses
We are coming to the close of its 3rd Quarter! That means it’s time to check in on your Budget to Actuals. Let’s see whether or not your company is going to earn a profit, break-even, or book a loss.
In any of these outcomes, we still want to figure out ways to spend smarter! Saving money is always important. We’ve put together a quick reference if you need to trim your company’s expenses quickly.
Save on your automatic expenses
Many services have found a way to turn their pricing model into a subscription model. In doing so, this means you could be spending too much! Sometimes you had to buy multiple users’ access, they jacked up the prices after a trial period, or you’re no longer using it and didn’t realize you’re still paying for it.
Every 3 to 6 months, you should check in on these subscription services. Make sure you’re still spending the right amount and level set your monthly spending. If you haven’t done this in years, I’m sure you’ll be able to save money here.
Look at your Digital Marketing Ad Buys
The next area to look into to save money is at your Digital Marketing Ad Buys. You need to be continually checking in to make sure that your Return on Investment (ROI) is staying within your budgeted targets. ROI tells you whether you’re getting your money’s worth from your marketing campaigns. And if you’re not, it’s critical to get to the bottom of it and understand why.
It is always essential to ensure that your marketing team is getting the most bang for your buck. If your sales are trending down, and your ad spend is staying level, it’s time to pivot it’s time to trim expenses. Align your spending with the company’s income until a more profitable strategy is derived.
Save when spending money on office supplies buys
It’s convenient to go to your favorite online store platform to order that one thing you’re missing from your supplies cabinet. In approaching your office supply buys when you need something, you are not likely to get the best price. Set up a structure of known constants and work with your office administrator to source the quality and price your office needs. Checking in on this process once or twice a year to make sure that you’re not overspending will save the company money in the long run.
Trim your Travel and Meals and Entertainment expenses
This can be a hard one to grapple with when trying to trim expenses. Cutting these line items can mean a compromise in what your company projects to outside clients and investors. However, this is also an area that can get out of control very quickly. It helps to utilize corporate travel services. Or if you’re not that large yet, make sure that you set reasonable thresholds for hotel/flight purchases and the per diem when staff is traveling.
When entertaining potential clients/customers, give your executives and sales teams clear limits. Associate the new spending limit with the size of the potential new business. You want to empower your team to close deals without breaking the bank on the way there.
Source new suppliers
Now this one can be painful! I know. Businesses are built on strong relationships between producers and suppliers. However, every so often, you have to look outside yourself to find better or cheaper options.
If you love your supplier and can’t imagine doing business without them, but their prices are out of touch with the market, it is time to negotiate with them. If they won’t budge on the fees, it might be time to make the switch.
Remember, not all suppliers can grow to fit the demand of your business, and if your business is grown and your supply chain isn’t, it will hold you back. Revisiting long-standing relationships is a delicate dance, but it’s crucial if you want to save your company money while you search for new business.
To save your company money, you should check in on your budget to actuals at the end of every month. This routine will allow you to see any expenses increase before they get out of control. It also provides you with the necessary touchpoints to know when sales are increasing or decreasing, and expenses are increasing or decreasing, enabling you to make timely decisions that will save your company money.
If you need help getting your company spending reigned in, contact Quant Solutions for a consultation on how we can streamline your cash planning.