Is your budget not stretching as far as it used to? You might be experiencing "budget creep." Here's how to eliminate that problem – fast!

Today, let’s tackle another issue impacting your bottom line: UNNECESSARY EXPENSES.

The larger your business and the more projects you juggle, the harder it is to ensure your money is working efficiently. While major expenses often get your attention, smaller costs – those nickels, dimes, and quarters – can slip under the radar and accumulate quickly. 

Plugging these leaks in your cash flow can easily add 10% or more to your bottom line. It’s time to pay attention to these small expenses and save yourself big money. 

Here’s how to do it:

1. Rethink Overhead Expenditures

   What I’m about to say might radically change your perspective: 

   There is no such thing as a "cost of doing business. If you run your business correctly, "overhead expenditures" don’t exist!  Peter Drucker once said a business exists to do two things: GET AND KEEP CLIENTS. Treat every expenditure as an investment because that’s exactly what it is.

2.  Evaluate Current Investments

   Examine your monthly spending and apply Drucker’s advice by asking: "How does this contribute to getting or keeping a client?"  The answers will be eye-opening.  Categorize your expenses into clear "yes" investments, clear "no" investments, and "don’t knows." Set the "don’t knows" aside for now.

3. Eliminate the "No's

   When you identify expenditures that neither bring in new business nor help retain existing business, drop them. Fast!

4. Revisit the "Don’t Knows”

   After eliminating the unproductive expenses, return to the "don’t knows." Ask yourself: "If I  wasn’t already doing this, would I start today?" This question, again from Drucker, will help you determine whether to continue investing in these areas.

5. Educate Your Employees

   Teach your team this method for evaluating future investments. When they propose new expenses, ask: "Interesting idea. And how will that help us get or keep clients?"  Listen to their responses and make decisions accordingly.

Your assignment is to go through your budget, step-by-step, and make the necessary cuts. By the time you're done, you’ll likely have freed up some much-needed cash!

If you are feeling overwhelmed or need help you can call me direct at 262.409.7970 or send me an email at [email protected].

You can also download our free ebook at https://optaprofit.com/ebook

 To your success,

 Don Vanpool