Four Expenses You Can Scrap From Your Business Plan

business plan

 business plan

4 Things You Need To Scrap From Your Business Plan & 2 Things You Can’t

Being in business these days isn’t cheap, and as every penny counts towards whether you are in profit or loss, it can be hugely useful to cut some costs where you can. To find out how and where to do this in your company read on, and get some advice on the places you should definitely not be scrimping in your business plan too.

Scrap printing

Argh! Do you have any idea how much money is wasted in printing every year in your business? A lot! That is how much! It’s not just on the electricity, ink, and paper for the printer either. It’s in the duplicates that are accidentally produced when employees don’t know if they have sent the right document through or not. It’s also in the time it takes them to wait for the print to happen and then cross the building to get their copy. For goodness sake people, most things can be read on screen now, and that is exactly what should be done!

business plan

 

To help with this issue remove all the printers around the office except one, and place that one in full view of the MD. That should seriously reduce the amount of printing that gets done and helps you to cut back on all the expenses associated with it.

Don’t scrap the latest tech

While you may want to get rid of the printers in your business to save some money, it’s not necessarily a good idea to apply this attitude to all things technological. In fact, there are lots of technological breakthroughs, both big and small that can seriously reduce your business’s expenses and enhance your business plan.

These include AI or artificial intelligence that can be used to predict customer buying patterns. VR or virtual reality that will allow customers to experience your product and service in their own homes quickly and easily and Drones. Tech items that can be used in the delivery of physical items, and to great use in promotional and marketing campaigns.

business plan

Of course, most tech does require an initial outlay of money, meaning that the savings you see are something that occurs over time, rather than straight away. Something you will need to factor into your expense calculations to see if they are worth the initial cost, compared to the benefits they create.

Scrap business lunches

The bad ol’ days of business lunches are dead! That means no fancy restaurants, no bottle of wines for you and your clients, and no expense accounts that get out of control.

Business lunches are an unnecessary waste of business funds. 

Remember there is no such thing as a free lunch, and in fact, all you are doing is schmoozing clients to convince them to choose you over your competitors. However, your product, service, or the value of the business plan should really be enough to make this decision for them.

After all, are they really doing to go with a more expensive, or less suitable firm just because of a free lunch? If so then you may not want to be doing business with them anyway, as who knows if you can trust them to keep up their end of the deal?

So put the kibosh on the business lunch and reinvest the money that you save into product and service development. Things that will gain you customers by merit and rather than just by buttering them up!

Don’t scrap accounting advice

Something that you really won’t want to scrap from your business plan is help from a CPA firm with your finances. This is because they can assist you will your tax returns, bookkeeping, financial statements, and even your accounting software training too.

That means that while they may be a significant cost of your expenses, they will be vital to keeping your accounting and finances accurate and in control. Something that is almost priceless for any business wishing to survive and succeed in the long term.

Scrap company cars

Another way of reducing the expenses bill for your business plan is to scrap company car. Yes, they are popular, and why would they be? Everyone gets a brand new car, every so often and they only have to pay a fraction of it’s running cost, and get to use it outside of work as well!

The thing is that while company cars work as a good incentive that is separate to wages, they can often cost your businesses such a high amount that they become unsustainable, especially with the new penalties that are being brought in for vehicles that are less eco-friendly.

To solve this issue, it may be helpful to cease the company care policy that you currently operate. Then you can replace individual vehicles with a small fleet of more eco-friendly hybrid or electric cars that are available for employees for work-related tasks only. Something that can help save your business money, as well as provide significant advantages of the environment.

business plan

Scrap some staff

Last of all, another way to save some serious expenses in by cutting down the number of staff you employ. Of course, this is something that needs to be thought about incredibly carefully, because folks are relying on your their employer for their livelihood.

However, that doesn’t mean that it’s not prudent to look at your staffing from time to time and readjust the numbers as necessary. Primarily because overstaffing can be a huge financial strain on any businesses. To do this is may be necessary to complete an audit to see where staff surplices lie and then make redundancies if the situation calls for it.

The use of robots can reduce expenditure over the long-term

In addition, task automatization either by Computer for basic processes or via robot for physical tasks should also be considered as a way of bringing staffing expenses down. Something that can be implemented while ensuring the continued quality of your product or service.

Summary

So, in conclusion, cutting office printing, business lunches, company cars, and some staff can all help to lower your business plan costs and make it a more viable long-term enterprise. However, it is also advisable that you not throw the baby out with the bathwater and ignore the money-saving benefits of professional accounting advice and new technological breakthroughs.  

 

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