Any time is a good time to get your business expenses under control. With very little imagination, any business can accomplish this task, which is especially important in these challenging economic times. While all businesses do need to spend money, one of the most straightforward things you can do to make more profit is to cut down on your expenses.
The first step in reducing expenses is to be honest with yourself as to why you’re buying what you’re buying — be it a new tool, forge or anvil. Research indicates that many of us buy emotionally. Never buy another shiny tool without asking “Why?” “What for?” and “Do I really need this?”
Here are some other areas to address to reduce your expenses
Keep accurate records. This is vital to being able to assess your business expenses. Such records provide information regarding expenditures and allow you to establish control over them. Many people are unaware of how much cash they spend on incidentals. If you spend $2 for a cup of coffee just once a week, that still adds up to $104 a year. A couple cups of coffee a week can add up to $360 or more a year. Now start adding up all the rest of those “few dollars” you spend in a week. You will be surprised how much you end up spending. To combat this, keep a daily log of all expenditures down to the penny. Then you will be able to review the record…