{"id":5,"date":"2023-08-22T02:06:30","date_gmt":"2023-08-22T02:06:30","guid":{"rendered":"https:\/\/paysprint.ca\/blog\/?p=5"},"modified":"2023-08-23T18:48:57","modified_gmt":"2023-08-23T18:48:57","slug":"7-tips-for-reducing-expenses-in-your-business","status":"publish","type":"post","link":"https:\/\/paysprint.ca\/blog\/7-tips-for-reducing-expenses-in-your-business\/","title":{"rendered":"7 tips for reducing expenses in your business"},"content":{"rendered":"\r\n<div class=\"row\">\r\n<div class=\"block textblock col-12\">\r\n<div class=\"text-block-container flex-grow-1              \" data-taxon-component=\"text\" data-taxon-text-title=\"ctn-text-intro\" data-taxon-text-contentid=\"16207\" data-taxon-text-display=\"default\" data-taxon-parent=\"true\">\r\n<p>Maintaining tight control over both fixed and variable expenses is an essential part of\u00a0<a href=\"https:\/\/www.bdc.ca\/en\/articles-tools\/entrepreneur-toolkit\/guides\/cashflow-management\">maximizing cash flow<\/a>\u00a0and profits in your business.<\/p>\r\n<p>There are a variety of tactics entrepreneurs can employ to rein in expenses and prepare for unforeseen costs that crop up over the course of the year. BDC Client Partner John\u00a0Brison offers several suggestions to better control expenses.<\/p>\r\n<h2>1. Make a plan<\/h2>\r\n<p>You need to evaluate where your business is now and where you want to take it in the future. A well thought-out road map is essential to properly forecast expenses and provide for contingencies.<\/p>\r\n<\/div>\r\n<\/div>\r\n<\/div>\r\n<div class=\"row \">\r\n<div class=\"col-12 col-md-8\">\r\n<div class=\"row\">\r\n<div class=\"block textblock col-12\">\r\n<div class=\"text-block-container flex-grow-1              \" data-taxon-component=\"text\" data-taxon-text-title=\"ctn-text-main\" data-taxon-text-contentid=\"16208\" data-taxon-text-display=\"default\" data-taxon-parent=\"true\">\r\n<p>\u201cFor instance, if you intend to pursue a new market next year, you have to build the related expenses into your forecast,\u201d Brison says.<\/p>\r\n<h2>2. Track expenses diligently<\/h2>\r\n<p>You have to understand your historic costs before planning for the future. This requires gathering data in an effective and efficient way.<\/p>\r\n<p>\u201cTracking your costs shouldn\u2019t be an afterthought, it needs to be an integral part of your ongoing operations,\u201d Brison says.<\/p>\r\n<h2>3. Benchmark against your industry<\/h2>\r\n<p>Establish metrics that are meaningful to your business and comparable to those used by other companies in your industry. \u201cIf you see you\u2019re spending more in certain categories, then drill down, investigate why and take appropriate action to reduce those costs to industry norms.\u201d<\/p>\r\n<h2>4. Manage variable costs<\/h2>\r\n<p>Look at your company\u2019s past\u00a0<a class=\"def-link\" href=\"https:\/\/www.bdc.ca\/en\/articles-tools\/entrepreneur-toolkit\/templates-business-guides\/glossary\/variable-costs\">variable expenses<\/a>\u00a0and calculate what percentage of sales they represent. Historic percentages provide both a good indictor of potential future costs and a benchmark to use in keeping those costs in line with selling activity.<\/p>\r\n<h2>5. Get tough on fixed costs<\/h2>\r\n<p>People tend to become complacent about\u00a0<a class=\"def-link\" title=\"Fixed costs\" href=\"https:\/\/www.bdc.ca\/en\/articles-tools\/entrepreneur-toolkit\/templates-business-guides\/glossary\/fixed-costs\">fixed costs<\/a>\u00a0because they are generally recurrent and often reflect long-standing relationships with suppliers. But you should periodically test the market to see if you can get a better deal from competing suppliers.<\/p>\r\n<p>\u201cIt\u2019s good practice to get two or three quotes regularly,\u201d Brison says. \u201cWhether it\u2019s by putting out a request for proposal (RFP) or a less formal method, it\u2019s important to send out the message that you are always watching your costs.\u201d<\/p>\r\n<h2>6. Invest in technology<\/h2>\r\n<p><a href=\"https:\/\/www.bdc.ca\/en\/articles-tools\/entrepreneur-toolkit\/guides\/making-technology-work-business\">Explore new technologies<\/a>\u00a0that may help your business improve efficiency, increase productivity and reduce costs. For example, many companies are now using cloud computing systems as opposed to in-house hardware that can be relatively expensive to buy and maintain.<\/p>\r\n<h2>7. Offer incentives to staff<\/h2>\r\n<p>Make people accountable for costs and establish appropriate rewards for employees who find ways to reduce expenses. This helps to create a zero waste culture within your organization. It also helps motivate staff members charged with implementing expense-reduction initiatives to stay on task and be creative.<\/p>\r\n<p>\u201cI like to explain overall expense management in three Rs: Research, review and respond,\u201d Brison says. \u201cIt basically boils down to careful planning (research), making tweaks and adjustments as they\u2019re needed (review) and rolling up your sleeves to do the necessary and ongoing hard work to achieve the plan (respond).\u201d<\/p>\r\n<\/div>\r\n<p><strong>Culled from:BDC.CA\/Articles<\/strong><\/p>\r\n<\/div>\r\n<\/div>\r\n<\/div>\r\n<\/div>\r\n","protected":false},"excerpt":{"rendered":"<p>Maintaining tight control over both fixed and variable expenses is an essential part of\u00a0maximizing cash flow\u00a0and profits in your business. There are a variety of tactics entrepreneurs can employ to rein in expenses and prepare for unforeseen costs that crop up over the course of the year. BDC Client Partner John\u00a0Brison offers several suggestions to [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":104,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[16,5,17,14],"tags":[],"class_list":["post-5","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-budgeting","category-business-management","category-cashflow","category-financing"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.4 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>7 tips for reducing expenses in your business - Blog for Small Businesses<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/paysprint.ca\/blog\/7-tips-for-reducing-expenses-in-your-business\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"7 tips for reducing expenses in your business - Blog for Small Businesses\" \/>\n<meta property=\"og:description\" content=\"Maintaining tight control over both fixed and variable expenses is an essential part of\u00a0maximizing cash flow\u00a0and profits in your business. 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