Are your business expenses owning you?
They say you need to put money into your business to make money. While we agree with this statement, we also see cases where many companies put their money toward unnecessary expenses. Most often it’s because owners don’t take the time to check in regularly and reevaluate the way they do things. Over time, this can amount to substantial loss. Here are some common trouble areas:
1. Personnel: The cost of salaries and benefits add up fast. Do all current full-time positions actually require a 40-hour-per-week dedicated employee? Only add to your workforce if the numbers justify it. This statement applies to contract labor as well. While hiring freelancers can help save a growing business money, one-off expenses can sometimes amount to the salary of a full-timer. Plus, full-time, salaried staff tend to exhibit more loyalty and willingness to learn the ins and outs of your industry.
2. Business Travel: Conferences, trade shows, dinners out and airfare are considerable expenses. While travel can open doors professionally, it’s important to be strategic and do your homework to determine if the opportunity is worth it.
3. Overpayment: How are your negotiating chops? If you aren’t assertive, you may be spending more than necessary on insurance, Internet, rent, equipment and other recurring expenses. Your might be able to talk your way into a price break, especially if you have been a loyal customer for some time. You’ll never know if you don’t ask!
4. Failure to Track Expenses: Do you know where every dollar is going? When you’re aware of expenditures, you can more easily identify overspending and modify for the sake of your bottom line. Ultimately by taking control of your finances, you can take your business to the next level–rather than merely surviving day to day.
Wanting to learn more? Ask about our Profit First approach.