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6 tips to cut down on business expenses

Maja Garaca Djurdjevic
Maja Garaca Djurdjevic
27 August 2020 1 minute readShare
6 tips to cut down on business expenses

Businesses are being encouraged to save money while operating through the changing coronavirus restrictions after as many as six out of 10 reported sales losses of up to 75 per cent this year.

A new Business Australia poll of businesses with 200 staff or fewer has revealed that 60 per cent of businesses have suffered a drop in revenue during the pandemic, while only 18 per cent experienced a consistent revenue and a slim 9 per cent enjoyed a growth in sales.

Business Australia chief customer experience officer Richard Spencer said businesses can trim their costs by following a few simple rules.

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“Small businesses have been heavily impacted across Australia, but there are simple ways to help your business stay competitive, manage costs and keep cash flow steady,” Mr Spencer said.

He shared his top six tips to help cut down on business expenses.

 

Go paperless

According to Mr Spencer, by going paperless, businesses can reduce how much it costs to send and store mail, as well as their environmental imprint.

Compare the best utility prices

Much like private consumers, businesses are encouraged to compare prices and switch providers if they offer a better deal on electricity or gas.

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“The average saving is just over $800 per year for businesses,” Mr Spencer said.

Negotiate hard

According to Business Australia, businesses must negotiate towards a better deal.

Many suppliers, even landlords, may be able to support businesses through this crisis with extended payment terms, rate reductions or even debt forgiveness.

Operate online

Mr Spencer advised businesses to shift business operations to the cloud to save on physical storage space.

“Look to sell online if you can,” he added.

Clever marketing

Mr Spencer’s advice is to look to earned media, especially through social channels to deliver cost-effective marketing campaigns.

Streamline subscriptions

Lastly, businesses are encouraged to review and cancel subscriptions they may not need anymore, freeing themselves up of unnecessary costs.

6 tips to cut down on business expenses
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Maja Garaca Djurdjevic
Maja Garaca Djurdjevic

Maja Garaca Djurdjevic is the editor of My Business. 

Maja has a decade-long career in journalism across finance, business and politics. Now a well-versed reporter in the SME and accounting arena, prior to joining Momentum Media, Maja reported for several established news outlets in Southeast Europe, scrutinising key processes in post-conflict societies and enabling citizens to influence decision-making.

You can email Maja on [email protected] 

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