How to slash your business expenses?

Ways to take care of business travel costs…..

Irrespective of whether you have a big business, a small one or just starting out in the world of entrepreneurship, travel remains an essential part of every business plan. The reasons for travel may be endless from traveling for exhibitions or conferences, to increase your networking circles for business expansion, finding sales in new regions etc.

With rising inflation the cost of travel has also witnessed a substantial increase. Every time you travel you are not only paying for the air or train fare, but also spending on assimilated costs like hotels, food, car rentals and taxi fares etc. All of these if not regulated properly can have a severe impact on the overall finances of your business in the end.

Five gold tips to reduce your travel expenses:

Use technology and opt for virtual meetings: With growing technology one could bypass the need of a physical meeting thereby eliminating the need for travel. You can consider opting for virtual meeting on multiple platforms like Skype or Google hangouts if your travel plans were limited to meetings or interaction with one of more individuals. With Smartphone penetration helping the cause planning a virtual meeting is easier, cost effective and equally effective as face to face meetings.

Plan your travel itinerary in advance: Last minute fares have a big impact on your finances. Many business owners do not plan their plans in advance and pay out a higher fare in the last minute hoping to cover their cost if the business deal goes through. The fact is that if you are always spending a higher amount for your last minute travel plans, you are overspending on travel which will be hard to make even if your business offers you a good cash flow or profits.  Instead of opting for a last minute travel plan, plan your trips in advance which will get you a lower fare for travel, accommodation and allied costs.

Combine trips together: If you need to travel to one destination now and then plan a trip again after a few days, it is a better idea to play smart and combine your trips. Instead of having one fixed agenda for your trip, spending an extra day and finishing multiple tasks works out to be cheaper than multiple travel plans. Combining trips can mean you can accomplish more with your travel plans increasing your chances of a successful business trip multifold.

Have a travel manager on board: If you are too busy handling the day- to- day operation of your business, consider opting for a dedicated travel manager. Just a five or ten minute browsing on your office laptop to quickly compare fares or hotel charges is not likely to get you the best deals. A travel manager understands the role and works out the most cost effective travel plans for you and other business employees.

Make use of travel centric cards: Do not forget the importance of having travel centric cards including credit cards for air miles and other travel cards. Since as a business traveler you will be doing a lot of travel using credit cards with travel oriented cash back or air miles option can offer you good return benefits over a period of time.

By planning your travel smartly you can save on any unwanted travelling costs which can help you lower your costs. This way your business capital remains free for the business and is not unduly spent on travel and travelling related expenses unwontedly.

What cost-cutting measures have worked for your business? Please share your views.