I recently saw a discussion in a Facebook group about reducing business expenses to save money. The admin of the group posted where she is cutting business expenses in 2018, and I just so happened to be cutting in the same areas. From that point, others started commenting as well.
Don’t get me wrong, I absolutely believe you should invest in your business. After all, it takes money to make money. I also think it’s necessary for scaling and growing. However, as many of us have learned the hard way, this looks different for different businesses. It also depends on what stage of business you are in.
That being said, here are some of the areas where my colleagues and I are cutting business expenses in 2018.
You read that correctly. Many of us are scaling back on how much we are outsourcing. While outsourcing has definitely helped us to get to where we are, many of us are experiencing that we either a) no longer need it or b) it’s costing us too much.
For example, I recently let go of a team member because our goals were no longer in alignment and it didn’t work for my budget. I am now in the process of implementing alternatives that still get the job done but also save me tremendous amounts of money.
Additionally, it’s helping me regain control of what’s going on in my own business. Many of us are experiencing that we let go of the reins a little too much.
Quite frankly, labor is the easiest thing to cut that also yields the fastest results. That’s why when large companies are in a pinch they usually cut their staff. Numbers don’t lie so it is what it is.
I recently paid for some website changes that were necessary for a new direction. However, this is definitely one of the business expenses I will be cutting for the rest of 2018.
Unless it is absolutely necessary, see if you can hold off on website changes. Additionally, if you are in the process of rebranding or a redesign, do it with the long view in mind. That way you don’t have to waste a ton of money later trying to update everything.
Anything that just isn’t working out.
I ruthlessly cut business expenses that are not giving me enough ROI. For example, I cut out Pinterest management as soon as I realized it wasn’t really working for me. That money is now being used for PR which is working for me.
I also cut my advertising budget for now. I have enough free marketing tools that are yielding me results and can hold me over until I figure out a new advertising strategy.
The key is to always keep your eye on the numbers to see what is actually yielding results. Most accounting software lets you do this with ease.
As a business owner, you need to know when to cut business expenses. Depending on what stage of business you are in. this list is a good place to start.