If you’ve been in business any length of time, chances are you can quickly and easily boost your profits simply by reducing your costs or to put it another way, by plugging those holes that money keeps falling out of. Over time, many businesses find they’re wasting an enormous amount of money on something they even forgot they were spending money on in the first place. This happens to all types of businesses, both online and bricks and mortar types.
We all do it, we see something that interests us, an awesome service that is offered on a recurring monthly basis and we buy it. It might be a magazine, a podcast, a membership for content or anything else that we pay for but do not use. If you use it, then it’s worth it. If you don’t, it’s a money leak that needs plugging.
Don’t assume that you should just get rid of such a service, though. Try to remember why you signed up and if it’s still a good deal, put into your calendar time to use the products and/or services provided by the membership. If after 90 days you still haven’t made use of it, cancel it, I’ve just done this myself, cancelling a service that started off tremendously but fell away after a few months.
Way Too Many Fees and Charges
Some fees cannot be avoided, in my case server costs, malware scanning, daily backups, etc. you’re going is going to pay fees to use third party payment processing, and fees for many other things. But, you can research and find out what the lowest fees are to avoid paying too much. At least yearly, check the fees each service is charging and compare these to the fees of another. For instance, insurance rates vary tremendously and some insurance companies actually offer special discounts to entice you to use their services, so check around and get the best deal possible and move insurance companies each year if you need to, you could potentially save thousands doing this.
As technology improves, you might find that you’re paying for multiple pieces of technology when you can just pay for one. A good example is invoicing software. You might pay for FreshBooks.com, along with GoDaddy Bookkeeping, and also use Basecamp.com. Do you really need all of these services? And what would happen if you chose something new that does everything such as Vorex Project Management? http://vorex.com/features/project-management/ I wonder what other duplicate technology you are paying for.
Not Using Service Providers Properly
Have you hired a virtual assistant but you barely ever give them work? If so, you’re not doing it right. Many people refrain from sending their VA work to do because they worry about sticker shock. But the truth is, if your VA is an expert in something that you’re not, it makes sense to give them the work. He or she is going to do whatever it is much faster and at a rate less than you make per hour doing the thing you do to make money. It just makes good sense.
One of my previous wives, I’ve had a few insisted on hiring a cleaner to come clean the house on a weekly basis, she then insisted on tidying up and cleaning before the cleaner arrived… as it couldn’t be too messy, not that it ever was. Do you think we could have better used the cleaner … darn right we could, we could have made her do all the cleaning, she would have been happy, I would have been happy … but that’s why ex-wives are ex’s I guess.
Utilize Tax Breaks
So many business owners try to do their own taxes, but with varying degrees of success. If you hire someone who is an expert to advise you on these matters and keep you on track throughout the tax year, you will find that a good tax person is worth their weight in gold. Plus their services are also tax deductible, just make sure you see you accountant months before the end of the tax year so that they can best advise you.
Finally, if you have a problem finishing what you start, you’re wasting a lot of time, and likely money too, on just messing around and not doing anything. If you want a real business, and not a hobby, treat yourself as good as you expect any vendor or service provider to treat you. Before you know it, your business will be a lean, mean, money-making machine that’s as tight as a drum.