The business world has a mind of its own. It lives, breathes, and at times, has claws that will rip a company to shreds. Stay on its good side and you will prosper. Tap into its bad side and you will surely be hacked to pieces. In this crazy world, it’s all about the bottom-line, the line where productivity and money managing meet head to head. If the two are not being synced on a daily basis, the company suffers and the business will surely suffer in the long haul. Most likely, the financial abilities in a personal setting set by the individuals running said company will most likely dictate how the company acts. If the CEO has a tendency to enjoy the high-roller mentality, his company is either going to hit big or drop fast. On the flip side, someone who is cautious with their money might be making smarter, more concrete decisions with their capitol.
Reducing your spending to create profits is a song that every business has tried to sing. Some are like a chorus of men and women in perfect harmony, so pleasing to the ear. Others are like nails on a chalkboard that simply can’t carry a turn and are doing a very bad job when trying. If you want to succeed at any level in the business game, you have to remember that doing less will produce more. This means that the “less” is meant to dictate spending, and the “more” is directed towards what profits should be. Spend less and profit more. Not sure how to make that happen? Check out 5 ways to hit your goals by reducing your spending. If your money is tight, putting these ideas into practice could be a very valuable asset for you financial and company future.
1. Luxury Costs – These are the things that we love to have and love to talk about. Big cable planes, fast cars and flashy lights. This sounds like a basic idea that should be easy to follow, but on average, companies might eat out 2-3 times a week, while personal consumption is around 4 times a week. These are costs that could be eating away at your budget. This is money that could be going back into savings or possibly being invested into the company’s future. Yes, these are things that make life comfortable. But businesses, especially start up ones, are not meant to be comfortable – they are meant to make profit. Trim the fat that is a luxury cost and watch your numbers start to balance.
2. Have the Last Word – Companies want to please. Successful ones, at least. Referring to #1, if you simply cannot give up a luxury or two, find a way to barter with the provider. Larger companies are worried about numbers just as much as you are, but for them, having a subscriber is more important that the money you might be paying. Have the guts to stand firm in a price that you set for the company. If you are steadfast and stay true to what you want, you will most likely come out on top.
3. Preplan to Win – Writing things down helps in so many ways. For your business and personal needs, unexpected costs come up out of nowhere. A printer breaks down, a car tire is popped, or maybe your laptop takes an Olympic style dive into the water. Avoid these surprises by preparing now for them. Have a list of what is happening a week at a time. When you see what will be for dinner, how much gas your car needs, and if you need to treat your staff to a small bonus, having everything in front of you helps the budgeting process.
4. Give it Up Already – Much like the luxury, our vices can pinch very hard at times and drain our financial profile to empty nothings. You may be in the market for a downgrade, whether you like it or not. That’s how companies go under and people screw up their spending. Need an example? Smoking and drinking come to mind. When you can give this up or drastically cut it, your money will double! Giving up smoking could put an extra $2,000 in your pocket, if you do a pack a day. Translate that into a business setting, and that’s company coffee. That’s extra money that can be put back into the business. It doesn’t sound like a lot now, but these vices can add up very quickly over time.
5. Debt who? – It’s a sad tale when someone or a business can’t save money because they are in debt. The money that would be saved is going towards something that must be paid off first. On average, the American household accumulates about $7,000 in debt, while the company (depending on size) could take on as much as $10,000! The key is to pay off revolving debt quick and not to accrue more while doing so. The quicker you pay off your debt, the more money that will stay with you. There’s a difference in paying off something that has a scheduled payment than being in debt. Buying a building might put you in the negative, but it’s a factored cost. Racking up credit card debt on things and incurring large amounts of interest is a totally different monster.
We all have the capability to be financially stable and smart. The time taken to figure out these precious rules can be the recipe for success or the plan for failure. You hold the keys to both doors; Open the one that leads to your promise in the business world, not the one the will send you straight down. #Business101