Decreasing business costs is important to increase income.

Collect Payments

One of the ways to increase cash flow is to collect on your customers asap. One small business I know sent their invoices out at the same time once a month when they “had time”. Don’t do this! The faster you collect, the sooner you receive income.

Late Penalties

Don’t allow customers to be late on payments without penalties. Your invoices should clearly state a due date and what penalties are available after certain amounts of time.  Lighter penalties can include a small fee and the toughest being a report to a collection agency.

Office Space

Consider subleasing your office space if you have room or if your landlord allows. Or you may want to downsize and settle for a smaller office. Sometimes landlords will even accept improvements you made to the building as rent but check with your landlord first.

Temps

Temporary employees are useful when you have steady business. They are easier to let go than full time employees. Plus, the temporary staffing agency will find them employment right away.

Bookkeeping

The computer revolution has brought us many things. One of them is the way we manage our finances. Software such as QuickBooks and Quicken makes it possible for the average user to learn bookkeeping.

Supplies and Equipment

Bulk companies like Costco and Sams have great deals on office supplies. You can also try eBay for used furniture and other equipment. Check your newspaper for out-of-business sales.