Is Your Business Leaking Money?

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.

Richest Man

“The Richest Man in Babylon” by George S. Clason reminds us that we each have talents and abilities which can be enhanced to produce wealth. Everyone has a special talent which will produce prosperity when properly implemented. “Beloved by millions, this timeless classic holds the key to all you desire and everything you wish to accomplish. This is the book that reveals the secret to personal wealth” is the quote from the back cover of the book.

Especially in this troubled economy, people are searching for the secrets to acquiring money, keeping that money and making their current money earn more. This book reveals those eagerly sought after secrets. One of those secrets is learning more about how money works. Education remains a timeless asset in every situation. Jim Rohn, noted business philosopher, frequently cautions us that “change does not start with inspiration, it starts with education.” Educate yourself on the business principles involved in obtaining wealth.

As a child growing up in Kansas, I frequently heard the expression “money does not grow on trees.” Well no, not technically. At this point in the American and in fact the entire world economy, we are all on fiat currency. Since fiat currency means that the paper money we carry is not backed by the gold standard or any other precious tangible metal, it is simply paper backed by the good faith and credit of the United States government. Ouch! That is not a comforting thought as I watch Franklin, Grant, Jackson, Hamilton, Lincoln and Washington all cringe as they are squeezed into smaller and smaller value. Sorry guys. Which brings up another point – why are there only pictures of men on our paper currency?

With the shrinking dollar and the pressing need for additional income throughout United States and the world, reading a book like “The Richest Man in Babylon” becomes even more important. In fact Jim Rohn’s mentor Earl Shoaff, recommended Jim start his library immediately. The two books Earl Shoaff recommended for Jim to read were “Think and Grow Rich” by Napoleon Hill and “The Richest Man in Babylon” by George Clason. Look what those books did for Jim Rohn. They started his journey taking him from a seriously in debt 25 year old to a multi millionaire. That kind of progress certainly inspires me. How about you?

Jim Rohn reminds us that going to get those books and read them is an easy thing to do; however, it is also easy not to do. How seriously do you desire to improve your education and financial situation?

I have coached many people from flat line finances or even red line (in accounting terms that is more debt than cash to pay it) to wealth. Reading “The Richest Man in Babylon” is step one. Step two is to contact me and let me assist you in furthering your finances and your education. We will work together to design the plan for your future.

Either you design a plan for your future or by default; someone else will design the plan. Who do you believe knows more about what you truly desire for your life – you or someone else? My belief is that you either know exactly what your goals are now or you will know after we spend some time talking together.

Massive Action

Warren Buffett did not become wealthy by investing the loose change in his pocket. Bill Gates created Microsoft by daring to dream big goals. Walt Disney did not visualize one amusement ride. Olympic athletes do not spend time at the gym casually visiting and half heartedly doing one or two exercises.

Every successful person takes massive action. Dare to dream big goals, choose to design a massive action plan to achieve those goals and commit to implementing that plan today. Regardless of whether your dream is making money online with a home based business or a franchise or a brick and mortar business, the business principles are identical. Every successful person and every successful business followed exactly the same formula.

Start by having a heart to heart talk with yourself. What do you passionately desire to achieve? The key words are ”you passionately desire to achieve.” Your goal must light your soul on fire with an all consuming passionate desire. Selecting a goal which you think you should choose or one that someone else chooses for you creates a disaster in the long term.

My father declared that I did not deserve a college education and that I would stay in the local farm community and get some mundane job as a secretary at a local business. The very thought of doing that drained the life out of me. History records many instances of people who attempted to live the life someone else, usually a well meaning parent, designed for them. Rarely did that lead to a successful and fulfilling life for the child.

This is your life. This is the only life you will have on this earth. You have the right and duty to design the life you desire to live, create the plan to make that goal a reality and take the massive action necessary to implement that plan. IF YOU DO NOT DESIGN THE PLAN FOR YOUR LIFE, BY DEFAULT SOMEONE ELSE WILL DESIGN IT. Who do you believe will do a better job of designing the life you truly choose to live? You or someone else?

Jim Rohn, noted business philosopher asks what you think someone else has designed for you and answers the question. “Not much.” Are you willing to settle for “not much” for your life? I am not. Refer back to Warren Buffett, Bill Gates, Walt Disney and Jim Rohn. Each one of these men created an incredible empire for themselves by following a simple formula. They dreamed a massive goal, visualized that goal completed, designed a plan to bring that goal into reality and took the necessary massive action to achieve.

Successful business people all follow exactly the same simple formula. Business principles remain consistent throughout the centuries. Whether you choose a successful small business or a gigantic corporation, the business principles are identical. The only difference between where you are right now and where these financial giants are at the peak of their careers is the dream, the plan and the massive action.

You have more opportunities right now with the online business potential than ever before in history. Success comes to those who dream big and take massive action.