Are you a small-business owner looking to save some money? Cutting hidden costs is one huge step to helping your bottom line. Hidden costs have a way of adding up over time, costing your business a substantial amount of money in the long run. Here are five ways to help you cut some hidden costs and save some money.

1. Liability Insurance: Protecting yourself in the case of a lawsuit is very important. $35.6 billion is paid out every year by small businesses for lawsuits. Having the right liability insurance protection can not only keep you protected, but it can also help eliminate some unnecessary fees.
2. Contract Employees: The average employee costs more than 1.3 times their actual salary when benefits and payroll taxes are added in. For finance, IT, and administration jobs, consider contract employees. Employers do not pay payroll taxes or benefits to contract employees.
3. Used Equipment: Buying used equipment is much cheaper than buying new. In fact, you could buy two or more used pieces of equipment for the price of one brand new due to depreciation costs. Brand new equipment loses up to 40% of its value in its first year of use no matter its condition. This makes used equipment much more practical.
4. Company Vehicles: During the evening rush hour and at night is when most serious car accidents occur. Allowing employees to use company vehicles for personal use increases your liability and the vehicle’s wear and tear. These are certainly unneeded hidden costs.
5. Contractor Work: Make sure the jobs you have your contractors perform are specialized. Do not waste their time by having them answer the phone or do invoices. That would be lost time and a waste of money because anybody can do those things.

These five ways of cutting hidden costs can be a great start for your small business. In the long run, it could be the difference between your business sinking or swimming. Do not forget to contact your Trusted Choice Independent Agent at Richey-Barrett Insurance Agency for all of your trade contractor insurance needs!