Everyone in the news has been talking about a possible upcoming recession. Whether or not it comes, the economy has been getting tight for all businesses and is affecting profits. What are some tips that you can use to prepare for harder times?
Recurring Charges
One thing I recommend is to go through your expenses and see if you have redundant or unnecessary expenses. Do you have monthly charges for services that no longer fit your needs? Did you sign up for multiple news services and only have time to read one of them? This is especially true for things that you were using and it is auto-charged so you don’t even think. Until it renews for another year. Do you have a subscription service for office supplies that are purchased on a regular basis? You may have enough on hand right now to skip a few months.
Fuel
Another savings area is fuel costs, especially in the current economy. Have you kept up with maintenance to ensure your vehicles are running properly and efficiently? There are tons of tips on the internet that can help save fuel costs. Some of my favorites are not letting the gas tank go lower than half and accelerating at a steady pace. If your fleet is older and needs replacing, make sure to look for more fuel-efficient vehicles.
Credit Card Fees
One last tip that I have is to review the fees that you are paying if you accept credit cards. If it has been a while since you reviewed what you are paying in merchant fees, reach out to a few companies and see if you can get a better rate. I don’t have any that I strongly recommend but I don’t recommend Square if at all possible due to high fee rates. Now that most companies accept credit cards, those fees can add up quickly. Especially if you do a lot of smaller charges because there is a per charge fee as well as a percentage of the sale.
Make it a Habit
If you go through your expenses and look for waste, you can put your business in a much better state whether or not we end up in a recession and will raise your profits. I recommend doing this annually when you are working on your budget for the upcoming year.
