When times are not great, every business should reevaluate their overhead and cut any unnecessary expenses that do not have a big impact on the bottom line or day to day operations. One of the most common areas business owners cut is advertising & marketing. Granted, this may be a very big expense, but it probably should never be cut. Instead, you may want to consider increasing this particular expense. Without new customers, your business will not be able to thrive and make it through the tough times. Customer service is another common area that usually finds itself cuts but probably should not. Customer service and advertising are some of the most important areas to any business. You must continue bringing in new customers while taking care of the ones you have.
Some possible areas you can cut could be: Technology – Most of us can live without all the latest gadgets & cool toys. Start focusing on all the new technology purchases and eliminate anything that is not really necessary. Telephone – because VOIP has been rapidly growing these last few years, traditional (analog) phone service companies are becoming more competitive. Call your phone company and see if they will cut you a deal or give you a discount. Energy – many areas have a choice in electricity companies. If you are in one of those areas, do some shopping around. Switching electric providers can be a very easy task. Supplies & Inventory – consider keeping smaller quanities of your office supplies and try to keep a tighter control on inventory. Just like what many retail merchants are doing today, keep as little quantity of a product as possible. You want enough inventory on the shelf to sustain sales, but not anything excessive that will be collecting dust. Lastly,fees. We are receiving numerous calls lately on merchants wanting to switch to reduce their processing costs. Last week, we received a pricing proposal from one of the Trump International hotels, so merchants of types & sizes are looking at their processing costs.