September 22nd, 2020 Taxloopholes.com Advisor
I recently shared with you 17 Things You Can Do To Reduce Your Overhead Costs within your business, and the tips I shared resonated with many of our followers on Twitter and LinkedIn. So I wanted to share nine more big ideas that you can implement today to reduce your expenses and increase your bottom line profits.
Regularly and systematically. You can’t get the contract if you don’t put in a bid.
Stop leaving money on the table by taking the first price that is offered to you. Go in with a clear goal in mind and negotiate. And always “tag team” any negotiations. You need a dispassionate check and a bad cop who is your higher authority in the negotiation room. Train key team members how to negotiate in their day to day roles as well for maximum benefit.
You will be surprised by the number of times the answer to this question is no.
Strategic expenses are those expenses that concretely help you improve your business’s bottom line.Non-strategic expenses are all other costs. Don’t spend money because you think that it has to be spent. The burden of proof is on the expense to justify why it should be spent. And check up on each expense often to make sure that it is still worth doing.
Examine your normal way of doing things, like sending things overnight to clients, travel choices, software subscriptions, etc…and see where you can make appropriate cuts.
If they do, pay by check and get an instant 3% off!
When working with other vendors or clients, put in writing the terms of the work needed and have the scope of the project laid out on paper. This will save you from “phantom deliverables.”
At the end of the day decreasing expenses comes down to these two principles.
Once you have these two principles down, repeat!