Get current income and expense report information for your business. Print out information for the past 12 months. Gather all information for all expenses that your business incurs on a regular basis.
Make a list of all expenses that are routine. List all expenses and write the dollar amount spent on that expense each month. For example, you would list land-line phone, cell phones, Internet, office supplies, newspaper subscriptions, electricity and water. Continue building your list until you have all expense information compiled.
Highlight the largest monthly expenses. Gather statements for each large expense and read through the charges. For example, read the charges associated with your land-line phones and determine if there additional charges beyond what you require being assessed such as long distance charges or voice mail services that you do not use.
Contact the source of each large expense directly. Speak to an account manager to discuss your current bills and ask about promotions or options to lower your bills. For example, you would call your land-line phone provider to inquire about bundles or promotions that you are eligible to switch your account to. Keep a list of the pricing plans told to you. Do not make any decisions until you compare prices to other vendors and providers.
Contact competing factories to inquire about pricing. For example, the land-line phone pricing options given to you by Company A would be listed on a piece of paper. You would contact Company B and Company C to ask for pricing for similar service. Compare all potential pricing plans and make a decision based on the pricing given to you.
Change providers and vendors as needed to lower expenses. Make reviewing monthly expenses a routine occurrence and take the same steps once per year.
Repeat the process for all expenses. Contact and negotiate pricing with all vendors including suppliers and service providers. Keep ideas such as bulk pricing, contract pricing, upfront payments and reduced service offerings in mind as ways to lower expenses. Negotiate all bills and expenses