19 Oct 2017
Managing Your Work Costs

Make sure your business is spending effectively. 

If you’re a business owner, then you know it’s difficult to track every penny you spend.  However, it’s still important that you have a general idea of where your money is going.  Don’t get too complacent when it comes to your business’s money; follow these tips to better manage your work costs.

Consolidate Your Spending

If your business relies on different resources for similar services, then there’s a good chance that you’re not spending wisely.  Instead of paying several different companies, try to find a single resource that can meet multiple needs.  For instance, if your business needs printing and shipping services, there’s most likely a single company that can handle both services.  Additionally, when you consolidate your spending to a few resources, you gain an advantage in bargaining.  Typically, if you’re a big client, the company will want to retain your business.  This means that you have negotiating power to ask for reduced rates and other discounts.

Invest in Employee Training

While spending money to train your employees seems counterproductive, a properly trained employee will actually save your company money.  A good training program can increase productivity and can reduce the time wasted due to employee confusion.  Additionally, you can use your training program to teach your employees how to handle company funds responsibly, and how to conduct price negotiations on your company’s behalf.  The money your business will save with discounts will definitely make up for the money spent on training.

Set a Good Example

As the leader of your business, your behavior sets the precedent for the rest of your company.  This means that if you are spending company funds irresponsibly or if you are wasting company time, then you are setting an example for all your employees to follow.  Instead, show your employees that you are fiscally responsible and level headed.  Your team will follow your lead and their careful handling of company funds will save your business money in the long run.

Follow these strategies to better manage your business’s spending.  Another way to keep work costs down is to make sure you have the right commercial coverage for your budget.  To find the best policy for your needs, contact the experts at Weaver & Associates in Arcadia, California.  Our dedicated team is ready to assist you will all your insurance needs.