• Skip to main content
  • Skip to primary sidebar

  • Home
  • About Us
  • Contact

Want to Minimize Rent and Storage Costs? Consider This

November 28, 2018 by L. Scott Elwell

For many small businesses, office rent and inventory storage costs are perceived as fixed. But are such expenses truly inflexible? Oftentimes, no.

Because rent and storage costs often constitute a significant portion of a business’s total expense budget, creative owners who find ways to minimize those costs may reap substantial rewards. Consider the following questions when trying to shave some money off your rent and storage costs:

  • Rent — Is it negotiable?  If your business is located in an area with unoccupied office buildings, you may enjoy a strong bargaining position. Open up negotiations, especially if you’re nearing the end of a lease term.If your company is struggling, consider letting your landlord read your firm’s financial statements, making it clear that a reduction in rent would enable your business to survive and prosper. A renegotiated lease agreement might also provide for a temporary rent reduction in exchange for increased payments when sales start climbing.
  • Moving — Is it an option? Just because you settled in this location years ago doesn’t necessarily mean you should stay put. You might get better lease rates across town, closer to your customer base or suppliers. Or you might pick up stakes and take your business back home.
  • Subletting space — Should you become a landlord? If your current landlord agrees and your lease terms allow, additional cash may be generated by setting aside space for a rent-paying partner or another company. But be sure to consider possible ramifications. Confirm that you won’t need the space in the near term, and don’t forget to specify conditions under which the location can be reoccupied or the lease terminated.
  • Inventory control — Can you minimize storage costs? If goods have been sitting on your shelves for too long, it may be time to sell, donate, or otherwise dispose of them. Insurance, spoilage, interest and taxes (basically all the costs associated with storing unused or obsolete inventory) can eat up your budget in a hurry. If storage capacity is limited, disposing of obsolete stock may also free up space for saleable items and fresh materials.

To further increase your savings, it’s worthwhile to explore your tax deductions. Our team is available to help review your options. Schedule a meeting with our tax experts: http://bastest.yourdmc.com/schedule.

Filed Under: Blog Tagged With: Accounting for Small Business NJ, Accounting for small businesses, accounting tips, business accounting systems, Cut business costs, tax break help, tax breaks, tax breaks for business, tax deductions, tax tips

Primary Sidebar

Search

Archives

  • January 2023
  • December 2022
  • November 2022
  • October 2022
  • September 2022
  • August 2022
  • July 2022
  • June 2022
  • May 2022
  • April 2022
  • March 2022
  • February 2022
  • January 2022
  • December 2021
  • November 2021
  • October 2021
  • September 2021
  • August 2021
  • July 2021
  • June 2021
  • May 2021
  • April 2021
  • March 2021
  • February 2021
  • January 2021
  • December 2020
  • November 2020
  • October 2020
  • September 2020
  • August 2020
  • July 2020
  • June 2020
  • May 2020
  • April 2020
  • March 2020
  • February 2020
  • January 2020
  • December 2019
  • November 2019
  • October 2019
  • September 2019
  • August 2019
  • July 2019
  • June 2019
  • May 2019
  • April 2019
  • March 2019
  • February 2019
  • January 2019
  • December 2018
  • November 2018
  • October 2018
  • September 2018
  • August 2018
  • July 2018
  • June 2018
  • May 2018
  • April 2018
  • March 2018
  • February 2018
  • January 2018
  • December 2017
  • November 2017
  • October 2017
  • September 2017
  • August 2017
  • July 2017
  • June 2017
  • May 2017
  • April 2017
  • March 2017
  • February 2017
  • January 2017
  • December 2016
  • November 2016
  • October 2016
  • November 2015
  • October 2015
  • September 2015
  • August 2015
  • July 2015
  • June 2015
  • April 2015
  • February 2015
  • January 2015
  • December 2014
  • November 2014
  • October 2014
  • September 2014
  • August 2014
  • March 2014

Categories

  • Accounting
  • Blog
  • Business Best Practices
  • Business Tax
  • Client Logo
  • Couples
  • customer loyalty
  • Deductions
  • Identity Theft
  • Inflation
  • IRS
  • Medical
  • News
  • Tax Bracket
  • Tax Breaks
  • Tax Law Changes
  • Tax Preparation
  • Tax Tips
  • Taxable Income
  • Taxable Items
  • Uncategorized

Copyright © 2023 · https://www.bas-pc.com/blog