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How to Reduce the Burden of Online Business Expenses

  • 3 min read

How to Reduce the Burden of Online Business Expenses


For entrepreneurs with companies in the first stages, the hot topic is how to reduce the burden of online business expenses. Electronic communication has revolutionized how the world does business, but without careful management, it can be expensive.

Operating a company online requires different skills than managing a brick-and-mortar store. But in both cases, you need an accurate picture of your costs in order to price your product and generate a profit.

The first step to reducing expenses is to know everything your online business uses. Otherwise you’ll lose track of where your money is going. For example, if you use WordPress, be sure to include your paid plugins in your costs.

business expenses, operating budget, e-commerce

Calculating Online Business Expenses

Expenses fall into two categories; one-time costs (called CAPEX for Capital Expenses) and recurring costs (called OPEX for Operating Expenses). Examples of one-time expenses are items such as computers, servers, and furniture.

Recurring expenses are items such as domain name registrations, domain hosting fees, production materials, and software licenses. Cash expenses and the value of your time both have to be considered. To focus on how much money you can make from sales is only half the picture: you can’t ignore how much it will cost to create your offer.

What it costs in time and money to create your offer plays a role in how you price and market it. For example, here’s the basic list of what’s involved to produce a 50-page e-book;

  1. Subject research: 2 hours
  2. Writing: 3 hours
  3. Proofreading: 1 hour
  4. Editing: 1 hour
  5. Advertising: 20 hours
  6. Marketing Website: 5 hours
  7. Social Media Marketing: 10 hours
  8. Cover Art: 2 hours


You also have to include the cost for these items used by the first list;

  1. Electricity
  2. PDF Software License
  3. Payment Processor
  4. Server Security Certificate
  5. File Storage
  6. Email List
  7. Email Marketing Software
  8. Supporting applications, i.e. Chatbox


Tips to Tame Your Expenses

  • After you decide how much time and money it will cost to create what you want to sell, create a budget and a schedule for your business and stick to it.
  • Whenever possible choose annual terms for applications and services to save the most money.
  • Save proofreading and editing production time by using writing software that corrects your grammar as you write.
  • If you don’t want to do the research, writing, proofing and editing, you can outsource the work as a project with a set budget.
  • Use an e-commerce friendly web hosting company that provides free security certificates in their plans.
  • Save money by using alternative PDF creators such as Foxit or Soda.
  • If you’re not comfortable with coding, using pre-designed templates or a drag-and-drop website builder such as Webflow or Nicepage are easy to use.
  • Save money on ads. Build you mailing list with opt-in offers on your Social Media profile that points to your hosted Marketing Page

Remember your profit margin is not only based on the money you spend out of pocket, your time has value as well. Did you create a budget for your business? Let us know here.

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