If you are buying wholesale jewellery then you are halfway there when it comes to keeping your business expenses down. However, buying stock is only one aspect of running a profitable small business, and whether you run your company part time or it is your sole source of income, how much you spend on overheads can seriously affect your returns. In short, the less cash you spend, the more you get to keep. So, here’s a few tips to help you to reduce your business costs.
Work out your costs
Before you decide how to cut your business costs, you need to know exactly how much you are spending. Look at how much you spend with wholesale dealers, the cost of your premises, postage, packaging, employees, website hosting and advertising fees. Write it all down no matter how little. It helps to use bank statements or invoices for reference.
Be honest about what you need to run your business effectively
When you look at your business expenses, it might surprise you just how much you spend. However, while some costs might be excessive, others are essential if you are going to run your business effectively. For example, there is no point buying poor quality stock because it is cheaper, as this will disappoint your customers and harm your profits. But if you are spending a fortune on premises then it might be worth looking at if you can move to a cheaper place or move your shop online. Similarly if you are spending a lot on staff wages, it might be worth employing freelancers as and when you need them.
If you buy stock in bulk, ask your wholesale supplier if they will give you a discount if you buy more. It could save you a fortune. When you fill out your tax returns don’t forget to deduct all your expenses from your total earnings. Lots of businesses pay too much tax because they don’t take this into consideration when doing their accounts. If you are spending too much on advertising or web hosting, shop around for the best deal but make sure the service is still up to scratch. Talk to other business owners and read online reviews to help. The key is to maintain quality while cutting costs. It takes time but in the long run can really pay off.