You’ve heard the saying “it takes money to make money,” but are you missing easy opportunities to cut unnecessary spending?
Take a cue from a few budget-savvy business leaders. Here’s how they identified and eliminated their biggest wasteful expenses — in the form of tips designed to help you do the same.
1. Don’t equate a lack of office space to lower costs. Working from coffee shops and cafes is a common way to eliminate the cost of leasing office space. But don’t assume it’s always the best financial option.
“I would work all day at a cafe to avoid family distractions,” says Jason Swett, CEO of Snip Salon Software. “But the cost of daily coffee and lunch added up to more than $400 a month. To eliminate this major expense, I bought a membership at a co-working space for $75 a month and bring my lunches most days.”
2. Experiment with staffing levels. You’re excited to lead a team that will help your small business grow. But do you have really have enough work to justify all those employees? Deborah Sweeney, CEO of MyCorporation, says that experimenting with optimal staffing levels eliminated expenses and helped her form a truly productive team that shares excitement for her business.
“When we had too many employees, the work being done was not completed at its full potential, and people didn’t feel necessarily useful or challenged. Ultimately, that showed in their work. When you find the perfect number of employees — meaning no one is overwhelmed [with too much work] or underwhelmed with not enough work — your team will really shine.”