How To Reduce Spending Without Hurting The Company
Written by Jenna Weiner
SMBs must find creative ways to cut costs while maintaining their consumer base. Some budget cuts can harm business practices, while others can prove beneficial in the long term.
The poor economic climate is forcing many small, medium and large businesses to make spending cuts to remain competitive. Cuts to certain business practices can result in damage to a company's revenue, productivity or efficiency if not researched first.
Smart Money recently reported that there are ways for small business owners to cut costs without hurting the company in the process including reducing expenditures on credit cards and shipping. Small business owners should have their credit card bills reviewed by a financial professional to make sure the company is not being charged hidden fees for services they are not using. Many of these hidden fees are not permanent and can be negotiated with the lender. In addition, there are many free online tools to help small business owners compare processing fees to make sure they are working with the best credit card company for their business's needs.
Large companies often have reduced shipping costs due to the large quantities of orders being processed. But small businesses can access discounts on their shipping costs as well through online software that can be customized to meet the needs of the company. With the software, SMB owners enter their shipment information into the system and receive a list of 10 different carriers that will complete the order and the prices they charge.
Another source of effective budget cuts can be seen in finding more affordable equipment. AT&T recently announced it will offer leases to small business with 5.9 percent interest rates on equipment leases, which is well below the average bank loan rate of nearly 10 percent. The company also said it is committed to doubling its small business leasing capacity over the next year and a half, and hopes to triple the capacity in the next three years. This will enable more small businesses to adopt technology solutions or upgrade their existing infrastructure.
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