You worked hard to
earn the money. Are you needlessly
letting gold coins leak out of your money bag as you travel to the bank?
How thoroughly and
how often do you review your regular spending?
Frequent Financial Review
A staff brainstorming session is an excellent
source of great ideas. Each quarter hold
a meeting with key personnel. Each
person will be responsible for generating two cost-cutting ideas and two revenue-generating
ideas. Compile all of the ideas and pick
the best two cost-cutters and best two money-makers. Reward the individuals who contributed the
winners; it encourages them to prepare more diligently before the meeting.
Keep your finger on your financial pulse. Even though
it was a pain in the schedule to reconcile numerous bank accounts every month
and match the data carefully with multiple reports, it kept me informed of the
exact status of every segment of the company.
As CEO of Mountain Castles, Inc. this policy also caught an embezzler
within one week. As much as you want to
believe in the trustworthiness of every employee, it never hurts to trust but
verify.
“Little
expense
leaks spring up all the time. Many are the result
of seemingly minor choices made in the day-to-day frenzy, but they can add up
to a lot of lost cash. Even if you think
you have all your expenses under control, do a quick check for some of the top
cash drips.”
Drip, Drip, Drip
Shipping. Plan ahead and avoid the necessity or impulse
to “overnight it.” Standard shipping is
far less expensive and frequently only a couple of days difference in delivery
time.
Credit-card processing – Review your monthly fee as well as the processing
percentage for various cards and the rates for different transaction types.
There are as many credit card processors as types of snacks on the grocery
shelves. Be certain you have the best
plan for your credit-card volume and average amount charged.
Insurance costs – Business insurance and health insurance are now changing
drastically. ObamaCare has necessitated
a thorough review of health insurance policies. Be certain you know your
options and have the most cost effective policies.
Marketing
should generate a measurable return. Personal
networking, websites, and business cards are more difficult to quantify but all
are necessary. Postcard campaign results
are easier to measure. Include a code on
the postcard, sales sheet, calendar and brochure which can be entered for a
discount at the time of purchase.
Analyze
ROI by individual marketing method, individual campaign and overall marketing
expense. Break it down per month,
quarter and year.
Utilize
the new designtemplates at PrintPlace.com to reduce the cost of
designing top quality print marketing pieces.
Professional results without the professional price both saves money on
creation and makes money by having more quality marketing pieces available.
Monthly fees – Did you sign up for a free trial and forget to cancel
before the monthly fees started?
YouSendIt, DropBox, GotoMeeting are just a few potential free to fee
companies.
Audit expense accounts and credit card accounts for unauthorized
charges. Scammers are known for entering
small charges on your credit card to be certain it is a legitimate card and
then increasing the charge amounts.
QuickbooksPro has the ability to enter all credit card charges and
reconcile the statement. If you don’t
recognize a charge, take the time to check it.
$20 charges may seem too small to bother but they can add up to hundreds
or thousands over a few months.
Establish
a clear policy of what expenses will and will not be reimbursed. Expense account charges for hotel gym fees,
airport lounges and personal cell phone bills can be major financial leaks.
Bank charges for check writing, wire transfer fees, monthly service fees
and minimum balance fees can all be reduced or avoided; many banks now have
free checking, Using online bill payment
services not only saves time, envelopes and stamps but allows you to schedule
payments to avoid ever paying late fees.
Web hosting is another rarely reviewed expense where significant savings may be
possible.
Company
supply closets can be more of a
garden hose than a small leak. Television commercials even tout this as “a great
place to score free batteries.” Pens,
reams of paper and staplers could be flying off the shelves. I once caught a housekeeper walking out with
a large bag supplies.
Each of these items may seem small, only $50 to $100 a month
each, but add up all ten and multiply by twelve months and the number can be
staggering.
Just think what you could do if you applied all of those
savings from plugging leaks into your marketing. Marketing would generate more revenue. Less wasted cost and more revenue would make
a delightful change in your company bottom line.
