Good business owners know that keeping your business expenses at a minimum is part of maximizing your profits. And in a year when our economy has been less than stellar, trimming unnecessary costs is smart.

Here are five ways to lower your business expenses:

1. Outsource work instead of hiring employees. This can save on employment taxes and benefits.
2. If you have employees, evaluate the cost of your benefits package on a regular basis. The easiest way to do this is to use an independent insurance agent to collect information from various sources.
3. Eliminate your office space. If you don’t need a storefront, consider going virtual…you can meet customers in their offices or even use virtual office space.
4. Evaluate your liability insurance. If you don’t have liability insurance and you have a physical office space, you need to get it. If you have a home office and clients come to you, you need to get it. And if you ever have clients or employees in your car, you need to get it. This is not a place to skimp. Protect yourself and your assets from potential devastation.
5. Use technology in a smart way. Don’t waste money by upgrading to the latest technology, unless it will allow you to work more effectively and efficiently. Really assess the cost/benefit before spending money.

Using these 5 tips can ultimately lower your business expenses…and by doing so, you can increase your profit margin. As we end the year, take some time to review your expendatures with a critical and cost-saving eye.