How to Stay Afloat When Expenses Are Too High

There are times when sales are low and you are raking in high expenses. There will be difficulties paying bills and it will be a wise decision if you begin to hoard your cash so as to keep your business afloat. As a pet business owner, there are various ways to cut your business expenses and implementing a few of them can make a huge difference.

It is not always easy to reduce the amount you spend in your pet business.

Below are creative ways you can lower your expenses without bringing your business down:

Reduce/Eliminate Discretionary Spending

You may have made plants to hire additional employees, buy new equipment, or paint your building; you need to wait. Unless that particular expense is very important to carry out an essential diversification or marketing plan, don’t spend because you need to save as much as you can.

Even if you’ve made a contractual commitment to spend money, you can try to negotiate your way out of it. If you are willing to pay a reasonable buyout fee, it’s legal and honorable. After all, once clued in to your financial problems, the other party may be happy to accept a partial payment from you rather than risk your business failing and receiving no payment at all.

If the other party simply won’t renegotiate, accept a reasonable buyout offer, or otherwise work with you, you or your attorney may need to point out that if you can’t stem the flow of red ink, bankruptcy may be your only option.

Think Twice Before Buying

It is a fact that all businesses purchase things and pet stores are not an exception. You will be able to save a substantial amount of money if you negotiate lower prices and buy in lesser quantities.

But given that prices usually go down when volume goes up, accomplishing these things together may seem impossible.

But when times are tough and suppliers are hungry for business, you’ll be surprised at how many will lower prices, if you ask and don’t take no for an answer. Don’t overlook basic expenditures, such as phone service, electricity, copying, janitorial services, and payments to independent contractors.

Even for smaller purchases, often it’s best to ask for bids (prices) from a number of suppliers, including your old standbys. And don’t sign a long-term contract with the first vendor who offers you a better deal. If someone eager to get your business offers you a lower price, the vendor you use now will probably try to keep your business by going lower still.

Cut Employee Perks

You need to first cancel extra payments you make such as parking spaces, company-paid cars, bottled water, newspaper etc. After that, take a close look at other payments your business makes.

Some cuts may seem less significant and more symbolic. For example, no longer renting parking spaces for your employees or cancelling pizza for meetings. Trying hard to lower your expenses in every possible way will make your staff understand that you are truly determined to stay afloat.