Did you know that consumer prices have risen by 8.5% in the last year?
Inflation is going up, and it doesn’t look like that’s going to stop anytime soon. Everyone is feeling the crunch, from entry-level employees to CEOs.
In response to the pressure of today’s economy, your business may need to reduce company expenses in order to stay afloat. But what are the best ways to do this?
Keep reading to learn four areas to look to first when you need to cut down on company costs.
1. Physical Office Space
If your employees don’t have to work together in the same office, why pay for rent? In today’s era of hybrid and remote working options, you and your employees have tons of tools for making these out-of-office working situations successful. It’ll also help your employees save on commuting costs, not to mention the time they’ll save working from home.
There are times when you’ll need to have in-person meetings, and some of your employees truly will not be able to work from home. In these instances, paying for a membership to a coworking space should meet your needs while still costing less than your monthly rent payment.
2. Office Supplies and Utilities
It stands to reason that by reducing your in-person office space, you’ll also save money on office supplies and utilities. Even if you do decide to hold onto your private office space, there are ways to reduce these costs.
Encourage employees to create digital files as often as possible instead of printing everything off. Provide them with options to take notes on their computers instead of with pens and paper. When possible, use less overhead lighting, and keep the temperature of the office warmer in the summer and cooler in the winter.
3. Insurance
If you haven’t talked with your insurance provider lately, you may be missing out on hundreds or even thousands of dollars in savings.
Insurance rates fluctuate constantly, and while it’s easy to let your current insurance policy renew automatically, that’s probably not going to get you the best deal. Shop around with new companies to see if you can get a lower rate than you currently pay. If your current company can’t match those rates, it may be time to switch insurance providers.
4. Personnel and Staffing
The workers of the company are often one of the biggest business expenses. And they’re well worth it! However, in a pinch, you may have to reduce staffing costs in order to keep turning a profit.
One way to do this is by automating some of your everyday business operations. Software like the kind found at Bentoforbusiness.com automatically tracks your company spending, saving you time and money in the long run.
Start Slashing Company Expenses Today
These four areas are great places to start when you’re looking to cut down on company expenses. The right answer is different for every business, but with a little creative thinking, you can find a solution that works for you and your employees.
Wondering about other ways you can optimize your business? Check out the other articles on our site for more tips!