Chapter 2 – Financial Control – Rule your money
This is part of the ‘How to’ coaching series. An ongoing series of activities to make your business successful. Follow it step by step and see positive results as you develop a robust business model, set on a solid foundation.
Activity 25 I regularly review my expenses and attempt to contain or drive down these costs
A lunch out here, a new piece of tech there, that new chair for the office, first class travel to anywhere.
It’s easy to be tempted to spend spend spend on things when you’re busy and feeling that everything is going great with your business.
Now may be a good time to stop and think for a minute; are you loosing control of your spending? Do you know what that does to the bottom line? Have you added up all the spending you are doing? Will it affect your ability to pay the bills next month? Or cause a problems when the tax bill comes in?
There are always legitimate expenses associated with running a business. It is wise to keep control of the expenses, especially if you have a team.
For example, if you are out of your phone contract, can you chose a cheaper rate? The price goes up anyway if you are out of contract; typically £3 per month. That’s another £36 going out a year that could stay in your business.
If you have a meeting offsite with a number of team members attending, can they share a car, rather than individual rail tickets?
One of my clients was stopping 15 minutes early in the day, so that the team could make the workplace tidy and clean for the next day. Suffice to say, this was a lot more costly than employing a cleaner to come in after the working day. It resulted in a significant increase in productivity verses a small cost of the cleaner. Also the cleaner did a much better job.
The ‘How to’ bit:
Set rules for what are acceptable expenses. Set up a regular review schedule of the company (and yours too) spending. Depending on cashflow and how well the rules are adhered to, you may do this weekly, monthly, or more regularly.
Regularly review your outgoings to see if the expenses can be reduced – both external and internal expenses. No point spending more than you have to. Are there better value services that you can change to? Or maybe do a better deal as a contract renews.
If you would like an unbiased review of your expenses, follow this link and Contact Us…