Periodically, if you want to boost your profit you can do so by simply plugging money leaks. It happens to all businesses eventually; they find they’re wasting an enormous amount of money on something they even forgot they were spending money on in the first place. This can happen to all kinds of businesses, whether bricks and mortar or solely online.
How to Plug Money Leaks in Your Business
As a business owner, it may feel like money is floating through your hands, instead of into your savings account. There are so many tools used to run the business, and so many trial offers that we have to keep track of, that there is likely a set of tools and services you are paying for that you have either forgotten about, or rarely use.
When is the last time you audited your expenses? I mean, every single thing you pay for to run your business? If you are looking to plug the money leaks in your business, here are a few good places to start looking!
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1. Forgetting about Recurring Memberships
We all do it. We see an awesome service that is recurring and we buy it. It might be a magazine, a podcast, a membership for content or anything else that we pay for but do not use. If you use it, then it’s worth it. If you don’t, it’s a money leak.
Yes, this also goes for those online magazine subscriptions too. You know, the ones we just love but haven’t looked at in years. Don’t assume that you should just get rid of such a service, though. Try to remember why you signed up and if it’s still a good deal, put into your calendar time to use the products and/or services provided by the membership. If after 90 days you still aren’t using it, cancel it.
2. Too Many Fees and Charges
Some fees cannot be avoided. You’re going to pay fees to use third-party payment processing, and fees for many other things. But, you can research and find out what the lowest fees are to avoid paying too much. At least yearly, check the fees each service is charging and compare to the fees of another. For instance, bank fees vary widely. If you can save just a couple hundred dollars a year on bank fees, that’s an amazing savings.
Be sure to also check your fees for processing payments as well. You know, PayPal, Stripe, etc. Depending on your volume, it may be time for an upgrade in your payment processor to reduce the fees.
3. Paying for Duplicate Technology
As technology improves, you might find that you’re paying for multiple pieces of technology when you can just pay for one. A good example is invoicing software. You might pay for FreshBooks.com, along with GoDaddy Bookkeeping, and also use Basecamp. Do you really need all of these services? And what would happen if you chose something new that integrates multiple services under one umbrella, such as Dubsado?
Make a list of the tech services you’re using and why, and check to see if there is a viable alternative. This alternative may not only save you money, but it may also save you time and make your business life a bit easier. Other tech examples include email marketing and CRM software. Tech offerings have changed dramatically over the past few years. Take a look at the new providers and see if there’s a better option for your business.
4. Not Using Service Providers Properly
Have you hired a virtual assistant but you barely ever give them work? If so, you’re not doing it right. Many people refrain from sending their VA work to do because they worry about sticker shock. But the truth is, if your VA is an expert in something that you’re not, it makes sense to give them the work. He or she is going to do whatever it is much faster and at a rate less than you make per hour doing the thing you do to make money. It just makes good sense.
5. Not Taking Tax Breaks
So many business owners try to do their own taxes, but with varying degrees of success. If you hire someone who is an expert to advise you on these matters and keep you on track throughout the tax year, you will find that a good tax person is worth their weight in gold. Plus, their services are also tax-deductible.
Finally, if you have a problem finishing what it is you start, you’re wasting a lot of time – and likely money too – on just messing around. If you want a real business, and not a hobby, treat yourself as good as you expect any vendor or service provider to treat you. Before you know it, your business will be a lean, mean, money-making machine.