The cost of doing business continues to rise as we near the close of Q1, and reducing business costs can make a big impact on your bottom line. Whether you’re a start-up or a well-established business, it’s essential to devise a plan. Here are 8 tips for reducing business costs without negatively impacting your customer service or product quality.

1. Re-evaluate your budget 

With costs rising more and more each month, you may not realize how much it’s impacting your P&L until it’s too late. Re-evaluating your budget, as you close the first quarter of 2022, can give you a clearer idea of the money flowing in and out, which is the first step to identifying areas where you can save. 

2. Go paperless

The price of paper, ink, mailing supplies, and postage can really make an impact on the cost of doing business over time. Going paperless can help you reduce this cost, by switching to digital correspondence and digital invoicing when appropriate and safe. A digital workplace that is less reliant on paper and print is also more environmentally friendly.

3. Consider purchasing refurbished equipment and furnishings 

Buying everything brand new may not always be the smartest choice when you’re trying to save. According to Entrepreneur, by buying refurbished equipment, you may realize savings that average 30 percent to 50 percent of the selling price for the same equipment in new condition. Refurbished equipment is typically fully inspected and comes with a warranty for greater peace of mind. For unforeseen circumstances like an equipment failure, keep in mind that Benchmark’s Small Business Financing offer at BenchmarkFCU.org can be ideal with loans of $25,000 to $500,000 funding in as little as one week.

4. Shop around and compare prices 

As a business owner, you need to stay on top of the cost of goods. This means constant monitoring and price comparison. Don’t be shy about asking your vendors for a discount when warranted. This goes for business insurance as well. While insurance is a necessary cost, you can sit down with your broker to evaluate your coverage and shop for different insurance agencies. You may find a surprising difference in rates between companies. You may also find your vendors and suppliers are willing to negotiate to keep your business. It’s smart to examine and negotiate all bills to find savings.

5. Evaluate your location 

Do you really need all of that space? If not, you may be able to lower your office space cost. Is it possible for some staff to work from home (even part time) and still be as productive? Make the most of your physical space, and evaluate the need for the space you have. This can be a good way to realize significant savings.

6. Unplug to Save

If your electricity bills are out of control, unplug unused equipment and turn off lights. Change to energy-saving bulbs and other energy-saving technology. Communicate to your employees the importance of conserving and saving on electricity.

7. Evaluate your software subscriptions

Let’s face it, we all have many subscriptions that go unused. By auditing your monthly software subscriptions, you may be able to find significant savings as you unsubscribe from those not needed.

8. Cut vehicle expenses 

With fuel costs soaring, cutting non-essential business travel can help reduce vehicle expenses. If you find yourself in need of a new business vehicle and finances are tight, consider leasing with a lower monthly payment. You may even consider carpooling with colleagues to business events to help save, as well as offer an opportunity to socialize and discuss business.

Consider Benchmark FCU for your business borrowing needs 

Benchmark Federal Credit Union now provides commercial lending services, commercial real estate, and small business loans. Click here to learn more about our small business loans.

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Rebecca Worthington is the Vice President of Community Relations at Benchmark Federal Credit Union. The only federal credit union to exclusively serve Chester County, Benchmark FCU has been serving the community for more than 80 years and is known for extraordinary services to its members. For more information on credit union eligibility and protecting your financial well-being, visit BenchmarkFCU.org.