You can increase your profits by generating more revenue, or by reducing expenses. This is a good time to look at what money is flowing out of your business.
Take a look at the expenses you claimed as deductions on your tax return. What were the largest expenses? Could they be trimmed, without harming your ability to do business?
Are you paying for products or services you don’t need or use? Could you get a better deal on your internet service, telephone, cell phone or long distance service?
If you have debt, how could you pay it off sooner and save interest expense? Do you use credit cards for business expenses? Consider switching to a card with a lower rate, and/or choosing a reward card that provides miles, cash back or other bonuses.
Bank charges can add up quickly. Some banks offer free or low-cost business checking. Would it be worthwhile to change banks? Or ask if your current bank will match an offer from a competing institution.
When you need to buy equipment or supplies, periodically compare prices. Consider maintenance costs. For example, buying a laser printer instead an inkjet printer can save you money in the long run. The initial cost of the laser is usually more than an inkjet, but the cost of supplies will be much less. It will be cheaper to operate the laser printer and it will require less time to order supplies, change cartridges, etc.
And don’t overlook opportunities to convert old inventory or equipment you no longer use to cash. Sell it off and get it out of your way.
Any time you can reduce your expenses, that reduction goes straight to your bottom line. Several small savings can add up to big profits.