Business Expenses that No Longer Make Sense

As a business owner, you know that certain operational expenses are unavoidable. Every business, no matter how small or how streamlined, will incur at least some expenses in order to keep its doors open.

However, as many business owners look to trim expenses, they often overlook the fact that many expenses that seem unavoidable or necessary are anything but thanks to advances in technology. If you are starting a business on a shoestring or with the help of a colorado business loan, or even trying to trim your annual budget, take a close look at how much you are spending on some of the following common expenses. Chances are you will find that you can eliminate, or at least reduce considerably, most of them.

Office Space

For some small business owners, a swanky office space is indicative of success. When there is space for everyone to work, plus a receptionist, a break room, a copy room, and meeting rooms, it’s a sign that your business is doing well. But do you really need all of that space? Unless you have clients visiting on a daily basis, you probably don’t. Most small businesses can function just fine without thousands of square feet of office space.

While some experts recommend that small business owners work from home for as long as possible to save money, there are some other ways you can save cash on office space, such as

1. Develop telecommuting or job share arrangements with employees. Work out a schedule in which employees can share workspace; if someone isn’t in the office every day, there is no sense in renting extra space that will go unused.
2. Seek a communal workspace or office arrangement. In many cities, you can find co-working environments that offer fully equipped work areas along with meeting space and business services (like copying and faxing) that charge a fraction of what you would pay for rent.
3. Meet clients in alternative locations. If you want to work from home, but have space considerations or don’t want clients coming to your home, look for alternatives. Hotel lobbies, coffee shops, and even public libraries have the space you need to conduct business, without investing in an expensive office.

Office Supplies

The typical small business spends about $350 per employee on office supplies every year. It might not seem like much, but if you have a dozen employees, those pens, paperclips, and reams of office paper start to add up. Consider how much you spend on printer ink, toner for the copier, and paper alone — it’s probably a pretty hefty part of your annual budget.

If you shift to a paperless office, you can all but eliminate those expenditures entirely. Shifting to an electronic environment where you manage and store all of your files in the cloud, and use electronic faxing, email, and document sharing to send and receive documents, means you don’t have to spend money on office supplies at all.

Payment Processing Equipment

If you accept credit and debit card payments from customers, there is no way that you can avoid some of the expenses associated with that, as the processors will always charge fees for their services.

However, you do not need to break the bank on expensive payment processing systems and equipment. In fact, many small businesses are doing away with the typical “cash register” and card reader in favor of mobile payment processing solutions that allow them to accept payments on their smartphone or tablet. Not only are such arrangements often easier to manage than the typical machine, but they usually cost less as well. In most cases, the equipment itself is free, and you only pay a percentage of each transaction — and gain a host of tools to help make your business management easier to boot.

Mobile Devices

Even just a few short years ago, it made sense for businesses to provide mobile devices to employee, particularly those who worked out of the office for any amount of time. Giving your employees a cell phone not only helped you keep in touch, but helped them stay productive. However, more and more companies are switching to a Bring Your Own Device model, and allowing employees to use their own devices for work. There are still some expenses associated with BYOD, particularly in relation to security, and you may wish to reimburse your employees for at least a portion of their mobile expenses, but it’s still less expensive than buying devices for everyone.

Trimming business expenses is never an enjoyable task, but by thoughtfully examining some of the places where you are spending money, you can find places where you may not need to spend at all — and that will do more for the bottom line than any half-hearted cut ever will.