Your credit card can be a very useful payment vehicle – but should not be used to store debt. Look for ways to reduce costs by sourcing gently used vehicles, computers or trade equipment. Alternatively, consider sub-leasing part of your space or try renegotiating rent with your landlord – it’s a commercial renter’s market in many areas right now! If your in-person workforce has been reduced as a result of a remote and/or hybrid work model, consider downsizing to cut down on rent payments. Consider organic, low-cost marketing activities that can boost referrals, as well as targeted social media programs. The best advertising is often word-of-mouth. Consider outsourcing when possible while investing in key employees and critical contractors. If you’re finding it hard to attract the right talent, try to avoid paying a premium in this inflated labour market. See if there are any you can discontinue or even suspend for a time. Run through all the publications, tools and programs you’re subscribed to and figure out which ones you’re making good use of. Given rising costs of goods, materials and labour, you may wish to move away from fixed-price contracts, so adjustments can be made as costs fluctuate. It’s also worth taking a look at your bank statements – consider an annual review (or earlier touch point) with your banker, as the way you use your account may qualify you for savings you’re not aware of. When was the last time you really looked at your utility bill? Can you become more energy efficient to bring it down? Do you have an internet plan that gives you the best bang for your buck? What about your cell phone plan, given your employees may be working off site? A quick call to providers can often result in lower monthly plans and/or greater efficiencies. Bartering for products and services can also help with cash flow. If you’re in a position to pay ahead of schedule, consider taking advantage of this opportunity. Your suppliers may offer incentives for early payment. ![]() Are you being as efficient as possible with your inventory management? Watch out for waste that may be eroding profits or excess inventory that is sitting too long, taking up space. Look at both your fixed and variable costs as you search for areas to trim. When goods, services and labour have become more expensive, it’s time to take a hard look at what your business is spending money on and determine where you can cut back. ![]() Here are five ways to find hidden savings and maintain profit margins in today’s environment.įeeling the pain of rising operating costs? These ideas can help you counterbalance the economic climate and discover efficiency in your day-to-day business. To offset this trend, businesses have to either increase revenue or decrease expenses. “Prioritize things like making payments on time and keeping credit utilization low in order to build your score,” Pukas said.Between inflation, wage increases and rising interest rates, it costs more to run a business for most owners these days. Especially if your business is just starting out, many lenders will look to your personal credit score as a marker of how well you might manage your money as a business owner. That will affect your business credit interest rates as well. “Paying bills on time and not taking out too much debt will boost a score and make that business a more attractive loan candidate.” “A business credit score is typically used - along with debt-to-income ratios - to make lending decisions for well-established companies,” he said. About 74 percent of those expenses included office supplies and materials, but business owners said they turn to credit to pay for everything from the gas in their company cars to their office building rent.ĭesMarteau recommended treating business credit just like personal credit. In fact, 46 percent of survey respondents reported using a business credit card frequently to fund their businesses. While qualifying for a business credit card is based off of your personal credit score, using your business credit card wisely will affect your ability to get a loan in the future.
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