If you’ve been wondering how to gain better control over your business finances, you’re in the right place. Let’s explore the top 3 strategies I recommend to clients for cutting expenses and boosting profitability.
1: Subscription Overload: Taming Digital Dues
In this era of automatic payments and subscriptions, managing your business’s financial health can be a bit of a whirlwind. Subscriptions, those recurring charges that zap your account, are akin to the streaming services we love and pay for personally—Netflix, Disney+, Sirius XM—except on a business scale. Software programs, apps, payroll fees—they all add up, making the seemingly trivial $10 a month a potential budget buster.
Now, picture this: eight different $10 subscriptions stealthily depleting your coffers to the tune of $80 a month. Shocking, right? But fret not; a simple yet impactful tactic awaits. Start by sifting through your bank statements, scrutinizing every automatic deduction. Assess each subscription’s worth—do you truly use and need every service? Moreover, gauge if the features you’re paying for align with your actual needs. Take my experience with Asana.com, for example, a project management tool. While a paid version offered more features, a free account sufficed for my clients’ requirements. This exercise, though seemingly daunting, yields the fastest path to instant savings.
2: Workspace Efficiency: Unveiling Your Office’s True Potential
Especially in today’s remote work scenario, the relevance of traditional office spaces is under scrutiny. For instance, at Matterhorn, we transitioned from a dedicated office to remote work, translating into substantial cost savings. The key lesson: assess how well you’re utilizing your workspace. Does it genuinely fuel your business operations?
In an age where versatility rules, ponder over the utility of your office space. Could a more budget-friendly option meet your needs? During the pandemic, the concept of sharing office space with fellow entrepreneurs gained traction. Also, consider subleasing extra rooms, transforming underutilized space into a revenue source. An efficient workspace strategy can significantly impact your financial health.
3: Payroll Precision: Balancing Employee Costs
Payroll—the lifeblood of any business—can morph into a significant expense. Navigating this delicate territory requires finesse. The ultimate aim isn’t slashing jobs but rather aligning your employees’ output with their compensation. If an employee’s contribution doesn’t match their paycheck, it’s time for a reassessment. While it’s never easy to make staffing decisions, remember that your business’s success hinges on every team member’s productivity.
Analyzing each role’s impact can yield surprising solutions that optimize both performance and expenses.
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About Abby Johnson
Abby Johnson is Matterhorn Business Development’s Chief Mentor, resident organizational genius and Certified Profit First Professional, helping our clients grow and organize their businesses. With a passion for empowering businesses to thrive and extensive experience in helping clients grow their revenue and manage their finances profitability, she’s committed to making a positive impact on your business.