Maybe you are fortunate enough to have a profitable small business. If so, you might not give much consideration to your business expenditure.

But ask any experienced business owner about budgeting, and they’ll wisely tell you that costs can creep up over time!

Stay on top of expenses with these simple, practical changes. They will help keep your costs down today and in the future. Let’s keep those business profits flying high!

Improve Your Tracking

When you’re a relatively new business, it’s straightforward to keep track of costs. But too often, growing companies can be caught unawares with escalating expenses.

You can avoid this situation by being proactive and introducing a more advanced cost tracking system into your business before you think you need it. 

These corporate cards are a perfect example of how you can upgrade your tracking while still maintaining a manageable and practical system. 

Negotiate New Supplier Contracts

By regularly reviewing supplier contracts and shopping around for a better deal, you can keep on top of some of your most significant expenses as a business.

Start with suppliers where you have increased your order value recently. Call them, explain that you are currently reviewing your contracts, and ask what they can offer you in terms of a discount.

Make it a task for someone in your team to do this regularly. It will help you keep costs down on some of your most essential expenses. 

Bundle Purchases

As you grow, you might find that there are more efficient ways of making your purchases. Look at your most common orders, and see if you can group products and buy them from one supplier.

That will help you get larger discounts on bulk orders, particularly from wholesalers. 

Review Your Inventory

There are probably areas of your product inventory that are either unpopular, unprofitable, or not as profitable as they can be. Stock takes up space, and that space costs money.

Do a check on products that regularly sit in your warehouse for a long time, and ask whether it’s time to cull these products to reduce your storage costs. 

Introduce Remote Working

If you are taking on more employees, ask yourself whether it’s time to introduce remote working.

That way,  you can reduce office space, swapping expensive commercial rent for regular hot desking (coupled with a modern home working culture).

With record numbers of people worldwide working from home due to COVID-19, now is the perfect opportunity for you to cut down on pricey office space for your business. 

Encourage Employees to Show Budgeting Discipline

Being budget-conscious is a cultural thing for businesses, so make it a core company value.

Encourage all your employees to seek out cheaper options before making purchases for the business. Train your employees on how to negotiate with suppliers.

Even small reductions can add up when done across an entire workforce. 

Be Proactive to Keep Business Expenditure Down

If you can monitor your costs and make small changes here and there, your business expenditure will be easy for you to manage. And it will set you on the right path as your business grows