<img height="1" width="1" style="display:none" src="https://www.facebook.com/tr?id=349935452247528&amp;ev=PageView&amp;noscript=1">
Search
word-map-thumb

The Alternative Board Blog

Seven Needless Expenditures You Need to Stop Paying Today

Nov. 15, 2017 | Posted by The Alternative Board
needless expenditures

At some point, every business makes needless expenditures that sap valuable time and resources from other projects, and damage the bottom line. These excessive costs—which also detract from funding new customer acquisitions or product upgrades—often perpetuate themselves, making it very difficult to pull the plug farther down the road.

But if you feel the time has come to crack down on unnecessary spending, here are actions worth taking:

Improve the process of tracking expenditures. Businesses that fail to monitor spending often later find areas of waste and overspending that could have been avoided. With a plethora of cloud-based expense tracking apps to choose from, there are plenty of opportunities to strengthen existing processes and eliminate areas of excess spending as soon as possible.

Crack down on paper costs. If your business still spends money on paper products, it’s well past time to shift to digital technology. Virtually overnight, you can cut printing and storage costs dramatically. Scan important documents and email them to clients and suppliers, rather than incurring costs related to personal deliveries.

Eliminate unproductive meetings. Most businesses are susceptible to meetings “that waste everyone’s time and lack any viable ROI.” Think of the money you can save by holding only productive, actionable meetings. This frees up your team to engage in other, more focused (and often revenue-generating) activities.

Analyze the purpose behind every business trip. Back in the day, it was considered necessary to travel throughout nationally or internationally in order to maintain solid working relationships with clients. While this remains true to some extent, in fact, many businesses no longer feel compelled to show up in person at every industry conference, trade show or overnight client presentation. Digital and video technology make steady contact easier than ever—often at a fraction of the cost.

Want additional insight? Best Ways to Secure Capital for Your Business now to learn more

DOWNLOAD

Hone your negotiating skills. For all the needs of your workplace—from leased office space to purchasing supplies and equipment—it’s vital you get the most for your money. If your negotiating skills aren’t up to par, it’s possible you’re paying more to vendors for their products and services than is absolutely necessary.

Be on the lookout for ways to negotiate volume discounts, for example. Armed with information about much you regularly spend with current vendors—and what competing vendors might charge for similar products and services—you can negotiate ways of “aggregating purchases to achieve savings in volume.”

Explore options to outsource technology functions. Businesses can opt to purchase the most costly, up-to-date equipment to support their operations, but they don’t have to. Technology and software isn’t cheap and often entails further expenses in terms of technical support personnel and/or server administrators. Outsourcing IT services offers potentially significant financial and operational advantages, such as:

  • Decreased staffing costsAccess to data applications without paying license expenses
  • Opportunities to focus the internal IT staff on large infrastructure initiatives, rather than day-to-day desktop glitches
  • No need to constantly update IT equipment, a responsibility assumed by the third-party service provider

Outsourcing IT functions isn’t the perfect choice for every organization, but it’s a flexible, cost-effective option worth considering.

Encourage submission of cost-saving ideas from your employees. When leadership makes clear how important it is to reduce unnecessary spending—in order to continue making a profit and paying the workforce—employees feel incentivized to look for cost-cutting measures on their own. With your encouragement, they may come up with creative suggestions to consolidate current expenditures and other money-saving ideas well worth implementing. It’s up to you to communicate this organization-wide priority and reward the best cost-saving suggestions.

Want to learn more about sales management and training? Find out if a TAB Board is right for you!

Read our 19 Reasons You Need a Business Owner Advisory Board

DOWNLOAD

Written by The Alternative Board

Related posts

Email Marketing in the Age of COVID-19
Oct. 22, 2020 | Posted by The Alternative Board
In spite of all the changes rocking the business landscape, experts agree that email marketing remains a consistently effective way of reaching customers. In part, this is because companies can...
7 Ways to Market your Business for Next to Nothing
Sep. 11, 2020 | Posted by The Alternative Board
Marketing need not be a mystery or expensive. For many business owners who are tightening their belts and reducing expenses, marketing expenditures are often the first to get trimmed. The truth is,...
How to Prepare Your Clients for a Price Increase
Sep. 3, 2020 | Posted by The Alternative Board
Every business must, at one point or another, share what’s viewed by customers as “unwelcome” news—the need for a price increase for products or services. Some businesses simply set the wheels in...
How TAB Helped A Member Grow During COVID-19
Sep. 1, 2020 | Posted by Phil Spensieri
Since the start of the COVID-19 pandemic, many businesses have struggled to survive. But for some, the pandemic has provided an opportunity to thrive. Garden Connections is one of those businesses. ...
The best piece of business advice I have ever received is…
Aug. 28, 2020 | Posted by The Alternative Board
When you’re a business owner, your best lessons often come from two places: failure or wise words from owners who have been there. There are going to be inevitable ups and downs in every enterprise....
10 Creative and Often Overlooked Ways to Find Hidden Money in Your Business
Jul. 16, 2020 | Posted by The Alternative Board
With the strains of rolling shutdowns across the country, many businesses are finding their profits diminished or uncertain. Many leaders are relying on tried and true revenue generating strategies...
9 Tips to Help Create a Living Company Culture in a Virtual Workplace
Jun. 26, 2020 | Posted by The Alternative Board
As businesses around the world have gone virtual, digital tools have helped keep most aspects of our work life functioning. Many businesses are reporting increases in productivity, with activities...
How to Improve Diversity in the Workplace
Jun. 9, 2020 | Posted by The Alternative Board
The U.S. is going through some challenging times right now, but a growing awareness of the value of diversity in business may prove to be of long-lasting value for us all. Though the future is...
Time for a Closer Look – Assess Your Business Practices For The New Normal
Jun. 3, 2020 | Posted by Phil Spensieri
For most, if not all, business owners COVID-19 has proven to be their biggest challenge yet. During the last couple of months, I’ve witnessed, firsthand, the resilience of many business owners...
Help Customers Stay Connected and Loyal to Your Business
May. 20, 2020 | Posted by The Alternative Board
Small businesses have always been challenged to attract and retain a loyal customer base. This challenge has been intensified a thousand times over because of the Coronavirus outbreak. Whatever their...