Below, experts weigh in on how business owners can reduce business spending.
Add travel expenses to your list. “Historically, you couldn’t deduct commutes as a business expense. Starting in 2016, New York will allow you to deduct subway cards, ferry rides and any other form of public transport. We’re going to start paying for all of our employees’ commutes since the money won’t be taxed.” Bill Cooke, 3forge
Pay in advance. “Every month I like to run through my expenses and see which costs can be cut. One of the best ways to eliminate monthly costs is to see how many monthly-based services you can pay for a year in advance. Many hosting and marketing subscription-based services have this option in place and sometimes can save you up to 50 percent a year, simply by paying in advance instead of monthly.” Zac Johnson, Blogging.org
Move out of your office. “Move out of your office and into a WeWork space. My company has a four-person private office in the WeWork Holyoke Building in downtown Seattle. We walked in and started working on day one without having to rent or buy furniture. Internet, electricity, conference rooms, common and event spaces, coffee and cleaning are included. Your membership is month to month, too. You can’t beat it! See more at www.wework.com.” Colin Kimball, Small Screen, Inc.
Just ask. “Reach out to all your partners and suppliers that have annual agreements coming up for renewal to let them know you’ll be tightening your belt in 2016 and need to cut costs. More often than you think, you’ll get an immediate concession. If not, you know which services you need to do some shopping around for.” Robert Swisher, FestPop
Challenge everyone on your team to cut one expense. “Spend some time with your books to see where each team is burning the most cash. Challenge every person to come up with an idea of how to cut costs, and offer 50 percent of the money saved as a bonus to whoever can cut the most.” Lisa Curtis, Kuli Kuli
Get efficient with expenses. “Everything adds up, so being resourceful when it comes to top expenses is important. Look into bringing on interns, hiring temp employees or ‘cloudsourcing’ (using Elance, oDesk, etc.) to reduce payroll costs so you only pay for the services you use. Or, try trading services with other companies to save on some things you would normally pay for (www.tradebank.com).” Jessica Baker, Aligned Signs
Host an internal competition. “Offer incentives such as a small bonus or extra vacation time, to anyone who comes up with the best idea. Not only does this get everyone involved in the decision-making process and more invested in your company, it should also guarantee that you’ll have at least a few decent ideas floated your way.” Steven Buchwald, Buchwald & Associates.