In the last post, I shared the first four tips from Jonathan Long on how to reduce business expenses. If you missed the last blog, you can read it here. Today I’m sharing the last four.
5. Take advantage of travel reward credit cards.
You might be thinking, “Credit cards? Are you crazy? I want to save money, not accumulate more debt.” But there is a big difference between intelligent credit card usage and irresponsible and dangerous use.
Funneling all of your business expenses through one or two cards, and then paying off the balance in full every month is an easy way to accumulate enough points to save you a tremendous amount of money on airfare and hotels for your business travel needs. Fundera is a great website to search for the latest business credit card rewards. And check out https://fitsmallbusiness.com/best-small-business-credit-cards/ for a current analysis of available business credit cards.
Even if you don’t travel, there are plenty of cash back opportunities that can lead to less overall spending.
6. Always seek out multiple bids.
Whenever you are working with a vendor, manufacturer or supplier, it’s a good idea to seek out additional bids. Yes, it takes more time, but in the end the savings can have a huge impact on your bottom line.
I’ll give you a real-life example. A startup I’m involved with in the health and beauty space found a manufacturer and was set to move forward with a large production order. They only contacted two companies and then picked the supplier that they though was the best fit.
It took a day of hammering the phones and sending hundreds of emails, but in the end I was able to lock in a manufacturer that was 45 cents less expensive per unit. Now, at 10,000 units per order, that’s a savings of $4,500. Don’t be lazy. The extra work you put in can drastically reduce your expenses.
7. Constantly review, measure and optimize your ad spend.
If you have a set it and forget it mentality when it comes to paid media, such as social media, pay-per-click (PPC) and media buying, you will end up with a lot of wasted ad spend. Through my company, I consult with a lot of brands, and nine out of 10 times I find wasted ad spend simply because nobody was spending enough time on the review, measurement and optimization of the campaigns.
Split-test multiple copy and image variations of your ads, clip the non-performers, and constantly work to improve the performance of the ads that are generating a positive ROI. Reducing your cost-per-click (CPC) while increasing your conversions helps grow sales and lower your ad spend.
8. Negotiate a lower fee with your credit card processor.
If you have been with your current credit card processing company for a long time or if you are pushing a high dollar amount through them monthly, asking for a lower rate won’t hurt. If anything, it can help you reduce your processing fees, and your company retaining more of your revenue.
Most processing companies charge 2.9 percent and 30 cents per transaction, but if you have high dollar volume or longevity with them, it gives you leverage to negotiate a lower rate.
