These days, many small businesses are looking for ways to cut costs that don't involve laying off employees. Even successful businesses overspend on various services and practices. Here are seven areas where your business may be overspending.

1. Internet Service Providers

If you haven't reviewed your internet options lately, now is a good time. Many companies start an account with an internet service provider and continue to pay the same rate for a long span of time, without bothering to look at other options or ways they can save money with the same provider.

For starters, reach out to your provider and ask them about different services and rates that can reduce your bill. If they aren't willing to help you find a better deal, take the initiative and start checking with their competitors. If one is willing to give you a better rate, be sure to let your current ISP know in case they may be willing to budge to keep you as a customer.

2. Marketing

Evaluate your current marketing strategy and look for ways to cut your budget while maintaining efficiency. Make sure you have a definite marketing plan and that you are targeting the right demographics while tracking performance. This will help you eliminate needless spending on campaigns or targeting that aren't converting.

"Spending money on people who are not interested in your business is a waste of time and money," says ThriveHive content marketing manager Kristen McCormick. "The best way to keep your budget down is by targeting the right people with your efforts. Find your target audience and focus your marketing resources on them. Customers from your target audience cost the least to acquire, as they are already interested in your products and services. When you target a specific audience, you don’t have to worry about coming up with multiple versions of the same content for different groups—which can be costly and time consuming."1

3. Software

You may be able to save money on the software your business uses if you continually look at alternatives and follow tech news to see what's available as it is released. Business software is a competitive space and companies are always looking to outdo one another and get more users/subscribers. Free solutions are available for many processes. Take the time to read reviews and try out new programs to see if you can remain efficient or even increase efficiency for less money.

4. Data and Storage

Data and storage management is a major business solutions area where you can potentially save big by selecting a different provider. Numerous cloud solutions are available, some of which can be completely free if you use a small enough amount of storage. If you are paying for larger amounts, make sure you actually need that much because many businesses overpay for storage they'll never use. At the very least, you should regularly check how much data you're actually using so you can stay on top of related expenses.

5. Telecommunications

Like internet service providers, businesses often stick with the same telecommunications provider for long periods of time without giving it a second thought. Keep an eye out for better prices from the same company and/or competitors. Depending on your needs, you may even be able to get away with a reduction in services as more people rely on internet-based services for their communication needs.

6. Vendors

Vendors should also be reviewed on a regular basis to ensure you're not overpaying for what you're getting from them. Ensure that you are working with reliable vendors, but also determine if you could be getting more for your money from competitors. Regardless of who you do business with, it never hurts to negotiate on price.

7. Locations

Location can obviously be extremely important to the success of a business, but at the same time, that depends on the business. You may have a business where your location is barely relevant. Even if your location helps you acquire customers, consider the pros and cons of a move. Is there another location that costs less, but could net you just as much business? Keep an eye on commercial real estate and consider a move if it would benefit you.

Businesses can often cut costs without sacrificing important resources or laying off employees. Be willing to look for changes to different services, strategies, and even location, and you may be surprised by how much you can actually save month-to-month.

1. https://thrivehive.com/how-to-save-money-with-your-small-business-marketing/

 

The information provided is presented for general informational purposes only and does not constitute tax, legal or business advice. Any views expressed in this article may not necessarily be those of Nevada State Bank. Nevada State Bank is a division of Zions Bancorporation, N.A. Member FDIC