While many entrepreneurs focus on how they can quickly increase sales, it is equally important to look for strategies that will help lower expenses. By lowering certain expenses, you can then use the available money towards other areas of your business. Whether you are a new or experienced business, here are three items to consider to maximize savings and grow your bottom line.
1. Consider Refinancing High-Interest Rate Debt – It’s always a good idea to check the rates of your current loans against current market rates, especially if your credit score has improved in the last couple of years. While there are plenty of advantages to refinancing your loans, you should ask yourself key questions before doing so. For example, it is important to make sure that the cost of refinancing any debt is covered by the savings you will get with the lower rate.
2. Save Money on Office Space – Save on your building costs by sharing office space as opposed to purchasing or leasing traditional office space. Shared office space, including business centers and executive suites, provide office space shared by other companies and professionals that you can rent for flexible periods. According to Forbes, shared office spaces are usually cheaper than their full-office counterparts, offer many amenities for your business, and often come fully equipped and furnished.*
3. Maximize Use of Employees – Can’t manage to hire another part or full-time employee? Consider hiring an independent contractor or intern instead. Along with paying an employee a salary, you may also have to provide healthcare, supplies and other expenses that can quickly add up. Hiring independent contractors or interns is a cost-efficient way to hire help for business but still save money that you can invest in other areas.
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