Managing your budget like a boss typically means three things. You want to pay attention to how much money is coming in, track all money that’s going out, and then ensure the former consistently outweighs the latter. While you can achieve this goal by perpetually increasing your company’s income, you can’t magically make more clients or customers appear. What you can do, however, is examine your expenses to ensure you’re making the wisest and most economical choices.
Running a business comes with a slate of standard expenses that simply can’t be avoided. They include
· Rent and leasing fees
· Monthly utilities and website fees
· Wages, salaries, and benefits
· Equipment leasing, purchase, or maintenance
· Supplies for the office, floor, and employees
· Professional fees for attorneys and accountants
· Association fees and membership dues
· Marketing and advertising
· Travel expenses
It may initially seem there’s no way to cut certain expenses, such as taxes, utilities, and rent. Yet it’s still worthwhile to examine all expenses to determine if they can be reduced. When it comes to taxes, for instance, making green improvements that could reduce your utility bills may also come with a tax incentive or deduction.
If the building you’re leasing contains underutilized space, consider renting out the space to a related business or professional. Review the supplies you regularly order, figuring out if you can purchase them on subscription plans or in bulk to reduce the cost per unit.
The miscellaneous category of business expenses is where you may find several luxuries you can downsize or eliminate right off the bat. Luxuries refer to items you and your staff may enjoy, but they’re not necessary to keep your company in business. Only you can decide which non-essential items can go without affecting the bottom line. It’s particularly essential to have the mindset of a boss for this task, as you want to tackle the list without emotional attachment.
Certain so-called luxuries may initially seem like a straightforward cut, until you look at its overall impact on your company. A good example would be something like an annual employee party for which you hire expensive caterers and live entertainment. The get-together may be essential for your company culture, connections, and morale, so you don’t want to cut it altogether.
But you can swap out the expensive caterers for a less costly food option, such as sandwiches or BYO potluck. Perhaps you can trade the costly entertainment for a local band or other performers who charge less or may consider trading their services for yours.
Budgeting like a boss means being no-nonsense when it comes to expenses, but it doesn’t mean you can’t have fun. Brainstorm with staff and employees on ways to reduce expenses, a move that can provide a wider scope of creative input while ensuring your budget solutions still meet overall company needs.