In springtime, we delight in all things fresh and new: gardens blooming, cleaned rooms sparkling and storage spaces neatly organized. But to get there, first, we have to pull weeds, scrub gunk and toss out a lot of things we don’t need from our closets.
Spring-cleaning your small business budget doesn’t happen without some serious scouring, either. It requires making a clear assessment of expenses that may be blocking your company’s financial growth and figuring out ways to cut those expenses back or eliminate them altogether.
Here are four ways to tackle managing a business budget with a springtime spruce-up.
1. Prune Office Waste
If your copy machine and printers are constantly whirring, the vendors who keep them in working condition and sell you the paper to fill them may be happy, but they can be a source of waste in your budget. Consider eliminating printouts of invoices and office memos in favor of email notices. Use the blank sides of old copies for drafts and scratch paper. Reduce more waste and save money by swapping out paper coffee cups and bottled water for reusable containers.
2. Curb Energy Costs
If your heating, cooling, and lighting systems are working overtime, it’s probably affecting your utility bills. You can save energy and money through steps like caulking and weather stripping to seal air gaps in the office building, and shutting down computers and other equipment that don’t need to run after hours.
3. Clear Out Surplus Inventory
The earnings you forfeit when unsold products are taking up space in your warehouse can put as much of a strain on your small business budget as unpaid accounts receivable. With clearance sales, cross-sales to existing customers and special promotions, you may be able to sell some of the surplus you can’t return, as Industrial Supply notes. While you’re in a spring clearance mode, look for opportunities to sell some of the old vehicles or equipment you’re replacing.
4. Sweep Up Business Debts
Any spring-cleaning to-do list aimed at managing a business budget should give attention to managing debt. If juggling payments to multiple creditors are stressing your finances, consider paying off those obligations with a small business loan that might lower your monthly payment.
Get started on your springtime budget-scrubbing so that you can improve your cash flow and free up funds for planting and cultivating all sorts of new ideas to grow your business.