Financials and Cash Flow

Helpful guide to managing costs

Actively managing expenses may do more to help you maintain ongoing quality than simple cost cutting.

Published: May 09, 2014
Download PDF Version

Buy it with barter

Use barter - the exchange of products or services for things of equal value to you and the trader – as a tool to keep your cash flow intact. The benefit: Support cash flow, reduce inventories, increase sales, and make good use of excess capacity.

Go co-op when you can

Join volume purchasing groups. They exist for buying everything from the common supplies you might need to electricity and gas. The benefit: reducing per unit costs.

Shop your services

Manage your costs for services like business insurance, phone, and Internet provider by shopping around every year. The benefit: get the best current and competitive rates.

Buy in bulk

Buy key supplies - pens, paper, printer cartridges - in bulk at warehouse clubs, where you'll receive better prices than at most office supply stores. The benefit: realize the value of supplies that last longer, an office supply budget that is easier to maintain, and a single receipt for tax write-offs.

Use your vendors

Ask for discounts for bulk purchases. Suppliers usually have the same cash flow issues you do. They may be willing to offer discounts for early cash payments but may consider longer payment terms. The benefit: reduce costs and manage cash flow.

Negotiate your rent

Negotiate better terms, whether you're moving into a new space, evaluating a new space, or dealing with a lease renewal. Terms you can negotiate include economic (affecting your cost, such as rent) and business (impacting your operation). The benefit: get the most flexible rate structure to fit your business needs.

SHARE
Starting a Business

How to get started with strategic cost management

Make proactive cost management part of your business planning to control your expenses.

Go to article
Business Plan Center

How to identify fixed versus variable costs and lower expenses

Learn how you can save money by determining whether a business expense is a fixed cost versus variable cost.

Go to article
Financials and Cash Flow

Five ways to manage payment processing costs

Use these simple strategies to help you manage the costs associated with payment processing fees. 

Go to article