How often do you review your expenses? Really, once every few years, every month, when there’s a disaster maybe. Well here’s some valuable advice that will have immediate affects on your cash flow. Review your expenses every quarter.
When I say review I don’t mean slash, I mean is there a better and cheaper alternative to what I’m currently using or paying. Most business owners just have set suppliers for IT, phones, printers, stationary and so on but rarely look outside and see what options are available.
I take a client of mine who owns a mixed martial arts gym. After reviewing his IT systems we quickly realised he pays $250 per month for a system that he only uses one function of. A quick bit of research resulted in finding a far more superior product for only $39 per month. We also found the new product had several key functions for marketing and customer management that the old system did not. The saving on this alone was great but the increase in sales as a result of increased functionality was amazing.
It’s so simple to take a list of all your expenses and review them. A few phone calls and some time spent on Google and you’ll soon see how much there is to save. Despite the advantages of this exercise it incredible to see how few business owners do it and why is this? Simply put – laziness or complacency. If you feel it’s not worth the exercise then ask yourself what you would spend that extra $500 a month on if you had it right now. A new car, new clothes, holiday maybe. Make better use of your money and review what your spending it on. You won’t regret it.