I recently had a discussion with a client about how over the last 12 months he has reduced his operating expenses by $90,000, allowing his profitability in the business to grow substantially. It led me to think about how so many of our clients would benefit from learning how they can save money by looking at just 3 areas of their business.
Often our clients businesses grow in volume and maturity, however they aren’t always paying attention to the various finance options becoming available to them. Once a business reaches the 2 year mark, more lenders are open to providing finance meaning if you are looking to expand with an equipment or cashflow loan it should be much easier.
If it’s a case of trying to save money, you may be able to save money by refinancing your current loans.
Speak to your preferred broker about what finance options may suit you.
All businesses have and need insurances, but what we see happen with our clients is that they get busy and don’t get the time to review their insurance costs. Every year, a renewal notice comes out and our clients sign up for another 12 months without realising that often the premium will have climbed up.
One thing we recommend to all of our clients is getting in contact with an insurance broker to do the hard work for you and review your costs. Bizpal have a preferred insurance broker who specialises in transport businesses.
3: Tyres and Fuel
Tyres and fuel are probably one of the most expensive costs to a transport business. Again, because these businesses are typically busy, our clients order from the same supplier without comparing quotes. We can help to take the pain out of shopping around for prices through our sister company Bizpal Find. Bizpal Find can obtain the specifications of the tyres you use, and put out to the market for quotes on equivalent brands and quality tyres.
Fuel is another interesting one; which is where my client saved $90,000. Every quarter he would review his fuel cost, and negotiate the litre rate down with his supplier. More recently, he decided to get a bulk fuel tank for on premises. What that did, was reduce both his litre rate and time spent filling the tank each morning.
Hopefully the above tips have been helpful in improving your businesses bottom line. For more information, please call us on 1800 011 981 or visit our website www.bizpalservices.com.au .