When you’re succeeding in your goals and earning a healthy profit there you will, no doubt, begin thinking about two major points for the business:
- Increase the earnings
- Decrease the expenses
Increasing the earnings can be somewhat difficult at times because it also goes along with increasing your budget in advertising and marketing. Decreasing your expenses becomes an attractive option because cutting waste is often easier.
The following are a few of those ways you can decrease your expenses with your business so that you may increase your budget when expanding. The best part? They’re very simple and virtually every business can take advantage of these methods…
Around the Office
The main items that are going to drive up costs include:
- Office supplies
- Power usage
One way to cut down on two from the list (supplies & organization) is choosing to go digital with your documents; this will greatly reduce the cost of printing along with giving you wonderful organization options (like Evernote) where you can easily find important documents rather than digging through boxes every time.
The second way does the same (for power & heating/cooling). Our computers, lights, and all those gadgets give off a lot of heat so when they’re not in use just make it a routine to shut them down.
Other expenses such as the office furniture can be reduced if you are keen to keeping your eyes out for online deals or going-out-of-business sales in which you can find many great pieces of furniture for a fraction of the price compared to going to a major retail chain.
Going about Business Online
Consider the expenses for:
- Domain and website hosting
- Content and product production
- Advertising and marketing
When you are attempting to do these items all in-house it’s going to bring a strain because there is simply too much that needs to be done. An option would be to hire someone locally to come in and do the work but that comes with its own extra set of expenses that we want to avoid.
The key to cutting down costs when you’re online are:
- Tapping into freelancers
- Using automated tools
Freelancers are bountiful and can be found to do any job you may need for the business whether it’s writing ad copy and managing the campaigns to something as simple as responding to customer feedback. The use of freelancers will free up your time so you can pursue the bigger goals.
The other is automated tools. One quick read of our How-to: Automate and Streamline Your Tedious Affiliate Activities article and you’ll be up and running with these wonderful resources in no time.
Think of all the time and money you’ll save by not having to monitor every little detail about work.
Trips, Transit, and All that Stuff
We build business so we aren’t forced to for others. We aren’t the type that can patiently sit in a cubicle, counting the hours, and having to put up with the bureaucracy.
Why did we create our business?
- To be the boss
- To pursue a dream
- To enjoy the challenge
- To gain freedom
The big limiter in all this is that it’s easy to fall back into that 9-to-5 routine when we’re trying build the business. We essentially just swapped locations. We’re also putting in massive amounts of hours that put a strain on us and the people around.
Might I suggest taking a look at our article The Business without Boundaries: An Essential Primer on Location Independence. This is not only a primer about what goes into developing a business that knows no boundaries but also gives you the mindset needed to free yourself from the new 9-to-5 you’ve created.
Combine these concepts with some of the tips from the online portion of this post, mix in those goals and dreams to give yourself the right inspiration, and you’ll save a great deal of money by understanding ways to gain better flight deals, traveling to exotic locations, and having your business continue to generate a great profit without the expense of you always being there.
The Unexpected Stuff
I can’t stress this enough:
- Make regular backups of your work
- Create step-by-step tutorials of your work
- Continually change your passwords
A computer failure with no backup means you’ve just lost a substantial amount of money. You may not be able to get all that hard work back. Now you’re also stuck investing in new hardware. Most of this could be avoided if you maintain your computer and do regular backups.
The second is one that I’ve found to be one of the best habits to build as an entrepreneur. You and everyone working on something should make detailed tutorials on how it’s done. Why? Well what if someone decided to up and quit? How long do you think it would be for a new hire to get back into the swing of things if you and your team never really understood the previous employee’s routine?
Finally, another cost saver is creating better, stronger passwords (frequently) so you won’t have the loss if someone were to breach your security and expose private and valuable documents. Don’t make this common mistake. It damages businesses and it damages them hard.