07 Nov Ways to reduce fixed costs in your business
Businesses in Mexico fail when their expenses exceed monthly income. To avoid this situation you can take actions to reduce the fixed costs and save money in your business.
Fixed expenses are those that do not vary much with time. That is, they are expenses that you will always have to pay month after month, such as rent, salaries and electricity. It is important that you have identified them, so that you are aware of the money that you must forcefully set aside to pay for them.
By having them identified you can implement actions to decrease them. In Konfío we share some measures you can take to reduce the fixed costs of your business or SME:
Hire an expert to help you bring finance to your business
It can be very helpful for your business to have the help of someone who can advise you and help you reduce costs. It can also help you structure the financial plan for your SME.
Check the rent
Try to negotiate your rental agreement and check whether a long or short-term plan is right for you. If you are thinking about expanding, you can take advantage to look for other workspaces that are more accessible.
Constantly analyze your options
Always check the prices in the market, you may be buying your products or raw material at a higher cost. You may find cheaper options in the market that are useful to you. If you apply the power of negotiation with your suppliers you can get to acquire affordable prices. This will undoubtedly benefit your business.
Save on services
It will be very useful if you can reduce the consumption of electricity, gas, electricity, etc. You will notice the difference at the end of the month when you have to pay for services. Find the commitment of employees to help you, for example, turning off the light when it is not necessary.
If you reduce your fixed expenses, at the end of the month you will have saved more money and the performance of your business will improve. You can reduce them gradually, if you decide to save all possible expenses to boost your business.