Over the years, I’ve known hundreds of brilliant entrepreneurs. Their creative genius is unparalleled, a visionary sea of successful ideas anyone would envy.
But there’s ONE thing they all love to gloss over…
The nitty-gritty of their books.
Ugh, I know. Who wants to spend hours pouring over every single detail of a financial statement?
Okay, sure, some of us enjoy that kinda work. (After all, I’m in this business for a reason!)
But for most of my clients, the idea of cozying up to an expense sheet over their morning coffee is the stuff of nightmares. It’s just not the way their brains work, and worse yet, no one’s taught them what to look for.
Here’s the thing, though . . .
Most of your unnecessary expenses are buried in those lines . . .
And while you may not notice the finer details, you’ll certainly notice your bottom line.
Fortunately, I’m willing to give you a little cheat sheet.
Read on to find out exactly what you should keep an eye out for when reviewing your operating expenses.
How Much Are You Spending On Rent?
Listen up, friends.
The WFH craze isn’t just a 2020 fad anymore.
It’s here to stay…. And it’s got many people questioning the benefit of paying hefty monthly rents for unused office space.
Now, even if you don’t want to say goodbye to office culture in its entirety, there are certain things you can do to reduce your monthly rent expense (and the associated costs of having employees in one physical space).
Consider co-working spaces, flex spaces, or alternating Work From Home schedules to make sure you’re spending every penny wisely.
Reevaluate Your Staff
No, I’m not suggesting you clean house. However, I’ve seen way too many companies add random positions to their payroll, without thinking through the need.
When reviewing your headcount, consider both your current situation and your future expectations. If you’re on the fence about a new role, try outsourcing the work and see how it feels before you commit to a full-time employee. You just might find you don’t need everyone in-house. Or maybe consider a job-sharing model… you could find it increases productivity, and therefore profit, for the business. Simply put, don’t be afraid to think creatively about why and how you staff.
Comb Through The Benefits
Next, think through those perks.
What matters more to your staff, unlimited PTO or premium health insurance plans?
First, figure out how much room you’ve got in your budget for offering an attractive benefits package, and then get a pulse on what your employees want most.
The good news is that in today’s day and age, there are plenty of trusted solutions for retaining top talent through a variety benefits… withOUT having to spend an arm and a leg..
Stop Taking the “Set It and Forget It” Approach to Insurance
Who else is guilty of hitting the “renew” button on their insurance plans once a year, like it’s a mandatory to-do item to check off the list?
If you’ve done this, you wouldn’t be the first.
But the reality is, insurance requirements change, as do the needs of your company. So make sure to do your due diligence in reviewing your plans. Otherwise, you could end up paying for things that haven’t applied to the business since 2017.
Avoid the Dues & Subscriptions Black Hole
You know that moment when you realize you’re spending hundreds of dollars a month on Hulu, Netflix, HBO Max, that skincare subscription box, Amazon Prime, and a Washington Post subscription?
Yeah, it’s a lot.
And your business is the same exact way — except often a hundred times worse!
This is why you MUST conduct annual audits, so you don’t get blindsided by throwing thousands of dollars down the drain on dues & subs you forgot you had. And if you pay for your employees’ subscriptions, check to see if there’s a more cost-friendly corporate option.
Now that wasn’t so bad, was it?
Once you know what to look for, it becomes way easier to optimize your operational expenses.
And shaving off those extra dollars here and there can be a world of difference for your bottom line.
Still not feeling jazzed up about the idea of combing through the lines? Don’t worry. Ask an expert for help today!