Cutting Costs

How many times have you heard a business owner comment about having to cut back on expenses because of the current state of the economy?  I hear this all too often not only from business owners, but from everyone.  When you need to start cutting, where do you begin?

Take a look at your expenses over the last 90 days, last 6 months and the last year.  Before you can start cutting your expenses you have to know where you spend your money!  Most likely, you will find that you have already cut in the most obvious places, your discretionary spending.  If you are like most, you have started eating out less, or at minimum you hit the less expensive drive thru as opposed to a more expensive dine in restaurant.  You have probably started looking at sales ads in the Sunday paper, maybe even started clipping coupons. 

Take a look at some not so obvious areas.  My husband and I have been searching for the best wireless phone plan.  Our plan contains 5 cells phones.  We have used the optimized plan tool to ensure our plan is meeting our needs.  The contracts are up on 2 lines in December, 1 in January and the other 2 in June and July of next year.  We are estimating the cost of breaking the contract with our current provider vs. savings with a new provider.  Use the 6 month rule of thumb.  If you will begin realize a savings within 6 months, it is worth switching.  You can apply this to your home phone, satellite company, cable company and anyone that you contract with for services. 

My husband researched an alternative phone company and we found we could add a dedicated fax line and a separate business line with this new company for $10.00 per month LESS that what we pay for just our home line.  Now we have 3 lines at our house.  No more picking up and hearing an incoming fax.  No more listening to the annoying fax tone when no one answers the home line.  And, who doesn't want an extra $120.00 per year in their pocket? 

Corporate Options, Inc. provides budget set up tools, profit and loss review and other related services.  Schedule a free one hour consultation today.