Q & A:

QUESTION
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Q:    What are some easy ways to reduce my new company’s expenses?

—Cost Cutter

ANSWER
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A:     Dear Cutter:

When running a new business with limited revenue, it’s critical to rein in spending. Some easy ways to reduce expenses include encouraging your team to work remotely, using independent contractors whenever possible, and taking full advantage of tax deductions.

Additionally, many vendors will give you small but meaningful discounts just for paying your invoices early. Indeed, it’s common for vendors to offer a 2% discount when you pay your invoice in full within 10 days, instead of the typical 30 days. This is often represented by the terms “2/10 net 30” on your invoice.

Paying invoices early also develops strong relationships with vendors, which can lead to even bigger discounts and more favorable payment terms down the road. Finally, paying on time establishes good business credit, which can attract new vendors, investors, and lenders.

As a Family Business Lawyer™, we’ll assess your current financial systems and advise you about additional ways you can cut costs and shore up any weak spots in your company’s financial foundation.