As entrepreneurs, we analyze our sales, we analyze our direct costs, but what are we missing? The operating costs.
So many times, these operating costs are glossed over. They encompass a lot of different things like our supplies, payroll, travel, fees, equipment… It is hard to keep track of everything and is even more tedious to look over! What gets missed in this pile up of costs, are those little fees that over time start to add up until your operating expense is higher than it should be and you’re not sure where it took a turn.
How do we bring this down into a more manageable experience? Well, we can start by identifying subscriptions and outsourcing to vendors.
At the beginning of every year, there is the push for gym membership sales. So many people buy in, use it for a month, and then never go back. Suddenly there is a recurring $9.99 fee every month that slips out of sight and out of mind.
In business, these can quickly add up, bringing along unnecessary fees that takes away from your profit. When we are able to summarize subscriptions into one list, we can break down what we need and what we no longer use. Taking the time to cancel any extraneous subscriptions can immediately cut spending.
Vendors are experts. When we hire vendors, we are outsourcing people to do a job for us that they specialize in. There is a stigma surrounding vendors suggesting that more money is spent by going outside of your own business. Being able to step back from this idea and look at a broader perspective can be helpful. We realize that by using a professional, we can see incredible results and save more money down the line. Many times our own business isn’t ready to take on a new task; hire a professional that will exceed expectations while saving your own resources.
Need help diving into your operating costs? Book a time to chat here www.calendly.com/kickstartaccounting