Often times in business owners find themselves chasing as much revenue as possible almost seemingly at any cost. What is easy to ignore is exactly that…Costs. Sure there are the obvious costs such as labor, fuel, and utilities but what about the insidious items such as phone service, internet service, web/e-mail hosting, equipment ROIs, taxes, accountants and many, many others. Ben Franklin supposedly once said a penny saved is a penny earned. True and not true. In order to earn a penny you must typically provide 3 pennies of revenue. Save a penny in costs from the aforementioned items and you have in reality increased your profitability dramatically.
Renegotiate terms, ask for discounts, get multiple bids, offer your suppliers more business for lower prices. There are so many ways to save money and direct it to your bottom line and yet so often this is often overlooked and the focus is put on bids and new business. Stop, think, and act to save money…you won’t regret it.
