Business Expense If You are to Keep Funding Them Over & over

If you have your own business – whether a start-up or an established business – you need to ensure that your business expenses are as little as possible. Business administrative expenses are regular expenses that you make to keep the ball rolling.

However, most of the time, entrepreneurs fail to bring down these expenses, and a majority of them are start-up owners. So this is not surprising to see start-up companies using credit cards to fund their operations.

You can do it with either a personal credit card or business credit card, depending on the size of the expenditure. Even though you have a good credit history and your card has a higher limit, you should avoid funding your expenses with such cards.

This is because they can charge very high-interest rates if you fail to pay off the debt within the interest-free period. Therefore, unsecured business loans are a better option than credit cards.

However, it does not mean that you should rely on loans to meet your regular business expenses. Here is what you can do.

Identify the total expenses


Before you can decide where and how to cut down, you should know how much you spend on administration. Then, you should look over the expenses of previous months.

If your business is at least a year old, you should look at yearly expenses to get a better insight into your costs.

Once you know the total expenses you incur every month, you can decide what you can do to bring them down.

For instance, if you cannot meet all expenses because of unpaid invoices, you can ask your customers to pay you in time.

Cut back where it is necessary


It is always recommended to categorise your expenses into two categories: fixed and variable. Fixed expenses are those that remain the same throughout the year. For instance, rent, internet plans, phone call plans, and the like.

Add up all that cost because you do not have any scope to whittle it down. Variable expenses keep changing every month and this is where you can cut down on your cost. These expenses include shipping, transportation, sales commission, utilities, and the like.

When your business revenues are more than you expected, you can think of spending some money on the variable cost to scale your business. However, when your profits are lower, you need to whittle them down.

The purpose of taking into account all of these expenses will help you know where you can cut back. Here are some of the ways you can use to do it.

  • If you are struggling to meet all of your expenses with the available funds, you should outsource your services. Outsourcing is more cost-effective.
  • You can also decide to hire freelancers or remote full-time employees. This can cut back on your fixed costs as well variable costs.
  • Research for the suppliers who can deliver you materials at an affordable cost. Do online research and ask for the best deal they can offer. You should never hesitate to negotiate.
  • Try to hire multitasking employees because this can help you save a ton of money in salary, incentives and benefits.
  • If you are still struggling to meet all of your expenses with the available funds, you should think of moving out to a new location. This can help you choose your office with lower rent. You need to think about cutting on fixed expenses as a last resort.


Make a business budget


It may seem weird to you, but this is a must if you want to take better control over your expenses. By identifying your fixed and variable costs, you can get a better insight into how much money you need at a time to meet all of them.

It is a powerful tool to decide how much profits you should generate every month so you can easily manage to meet all of these expenses. It can be very challenging and painful to create a business budget, but this is the only way you can control your business expenses.

The purpose of making a business budget is to generate a cash reservoir. Therefore, the more money you set aside for your working capital, the better it is.

The significant advantages of stashing away for working capital is you will not have to chase online lenders to take out business loans for bad credit to meet your operating expenses.

You can quickly solve your purpose if you identify every score where you can cut back. For instance, you should focus on online marketing instead of the traditional one.

As far as it is about communicating with your clients and employees, including in-house employees, you should use online modes. Cut down on paper completely.

Whatever the money you save by changing your strategy, make sure that you transfer that directly to your cash reservoir.

Consider product demand and pricing strategy


There are various ways to cut back on your expenses, but you can still face difficulty meeting all of your costs with the available funds.

In this situation, you should try to look over the demand for your product and the pricing strategy. Sometimes your product may not have enough demand because of various reasons like high prices and poor quality.

Make sure that you invest in marketing to promote your products and services. Try to emphasise the benefits and features of your products instead of investing in a take-down stunt of your competitors’ products.

Make sure that you provide value to your customers and do not charge more than the market price. If so, you will have to justify it with top-notch quality.

You do not need to fund your business expenses with a credit card and business loans because you can whittle them down smartly. However, the tips mentioned above can help you a lot to take control of your expenses.


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  1. author
    27 Aug 2019
    Tomas Mandy

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    1. author
      27 Aug 2019
      Britney Millner

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  2. author
    27 Aug 2019
    Simon Downey

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