Small Business 2013 – Saving Money Idea #2
Occupancy is a fancy term for the cost of housing your business. It can include rent, property taxes, utilities, depreciation, maintenance, janitorial and so on. Rent is a major expense for most businesses. If you don’t rent or own your business building, move on to the next post. If you do rent or own your building, here are some ideas for saving money in 2013.
Yes, rent is always negotiable. Even with a signed contract, you may be able to renegotiate your lease and rent expense. Commercial vacancies are down in my area but there are still plenty of vacant offices and buildings. Landlords don’t want to lose a good tenant. You’ll need to have a valid argument for negotiating. Remember that you never get what you don’t ask for.
Reduce capacity. I keep downsizing my office in the same building. I don’t need three offices and a private lobby any longer. My first downsizing saved me $1,200 plus I negotiated to use the private restroom. I’m aiming to save another $2,400 this year my reducing my space and using a shared lobby. My landlord doesn’t mind because he can charge higher rents for my existing space and has trouble filling smaller spaces. Every business should always look for ways to reduce the amount of space they use. It can always be done.
Move. There are plenty of opportunities out there. Remember to calculate moving costs and additional marketing costs into any cost savings.
Share space. Find complementary businesses to share space with you. This takes patience but could save you some cash.
Fight the tax man. Property taxes are crazy here. If you own your space, think about challenging your assessment. If you rent, have your landlord fight the assessment. You might just get a break.
Shop around for lower prices on heat and electric. If your business is a heavy user, you may find some sizable savings.
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