Worried about overhead and costs eating your business alive? Don’t be.
By learning to make consistently intelligent decisions with your money, you can increase your profits and effectively work with what you already have.
A common saying among successful entrepreneurs is, “Revenue is vanity, profit is sanity and cash flow is king!” Cash to a business is like oxygen; without it, you’re dead very quickly.
The growth of a business is dependent on increasing three main factors: new clients, amount billed per client transaction, and frequency of purchases through repeat business.
However, managing the bottom line is equally important—if not more important—than increasing sales. Spending money wisely is essential to enjoying the fruits of your labor.
I’ve found three areas of my business where a reevaluation of spending freed up some capital:
1. Office supplies.
Why pay retail prices? Look into bulk service and product providers like BJ’s, Sam’s Club and Costco for everything from printer ink to electronic devices. Start by compiling your most recent office purchase receipts and note what you paid per item.
Research competitive prices online from other vendors, calculate their discounted prices and compare them to your total expenditures to evaluate possible savings. The more diligent you become with this process, the more you will save regularly.