One of the key challenges for a business of any size, is controlling expenses
Here are a few useful tips that can help keep expenses down:
1. Have a clear strategy: If you are clear about the direction you want your business to take you will also have a clear idea of where you need to incur costs and what costs can be eliminated.
2. Get three quotes: Make a company policy to get three quotes to ensure you are getting the best value and quality. Get them in writing!
3. Sign all invoices yourself: Once a week work through payments with your finance person. This may become tedious as your business grows but I can assure you it will be worth the effort!
4. Create expense policies: Who to buy from? What is the budget for this item? When should I order to maintain positive cash flow? Who is authorised to make the purchase?
5. Lead by example: As the owner, set an example for your team by minimising expenditure throughout your business.
6. Don’t stop spending on marketing: When times are tough and sales are down its important to maintain marketing activities.
7. Profitability, not turnover: High turnover does not indicate profitability in your business.
8. Banking: Ensure you are getting the best financial rates for every account.
9. Prioritise: Sort your needs from your wants and prioritise.
To find out more about Controlling Expenses please contact us
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