Too often when business owners want to make more profit they think ‘I need to grow my sales’. While that’s true to a point, one of the easiest places you can increase your profitability is to take a look at your expenses.
The best thing about reducing expenses is that those savings go straight to your bottom line
Here are three key things to do that are going to help you reduce your expenses:
1) Review your expenses.
When was the last time you sat down and reviewed the expenses in your business? You’ll be amazed at how expenses can just creep and add up. Many things you spent money on in the past may not make sense to spend now.
If you haven’t done this for the last six to twelve months, then sit down, print out a profit and loss report and just have look at where your money is going. One of our Biznostics customers did this recently during one of their missions and was able to save just over $400 a month by looking at the expenses in the business.
2) Negotiate your expenses.
Next as you review your expenses, identify which of your suppliers you might be able to ask for a better deal from. If it has been a while since you have done this then chances are your buying patterns may have changed. You may be doing more volume and so have more buying power. Sometimes you can change your buying habits and get a better deal. Like one of our fencing contractor customers… They were able to negotiate a better deal with his supplier by ordering a number of jobs at the same time which added thousands of dollars to his profit just by changing his habits.
3) Proactively manage your expenses.
Often expenses are incurred due to poor planning and poor management. Like a landscaping customer of ours who often would forget things on site for the job they were doing. They’d have to pop down to the local hardware store and buy the items they needed. There was a time cost to this because someone was off site to pick up the materials. Plus it was costing them money as they were spending retail prices to buy what they needed.
Proactively managing your expenses can make a big difference in improving the profitability of your business.
When you work on these three things on the expense side of the equation, you’ll make more profit.
And best of all it can usually happen quickly and the investment in time now will pay you for months to come.
P.S. Whenever you are ready here are 4 ways we can help you build and grow your business:
1) Download your copy of 3 Proven Tactics That Give You 5 Hours Back in Your Week
This totally free guide includes tips, time-savers, and expert advice on how to immediately claim back 5 hours of your time each week. Inside you’ll discover 3 proven tactics to stop time being wasted in your day so you get more done each week. To access the guide click here
2) Watch the Business Freedom Formula Video
In the video you’ll to discover the step by step blueprint we use to help small businesses create their version of business freedom. This could be simply streamlining your business so it runs more efficiently, increasing your profits so you have more choices or setting your business up so you can have time off without worrying that it is all going to fall apart. Click here now to watch
3) Book a 10 Minute Exploration Call
If you would like to explore how Biznostics can help you run and build your business, then book your 10 minute exploration call. On the call we’ll find out a little bit about your business and work out if and how we can help you. Book your call here
4) Join our Business Freedom Program
The Business Freedom Program is designed for business owners who feel stuck in the day to day running of their business and their business is not running as efficiently as they like. It helps you make your business much more profitable, much more efficient and much more enjoyable to work at. We are putting a new group together next month so if you would like to build a strong and successful business email us here with ‘Business Freedom’ in the subject line.