Managing Expenses Directly Impacts The Profitability of Your Business
We each deserve to be the best version of ourselves and businesses are no different. Businesses are navigating in very uncertain times with most facing complex and ever-changing challenges. Research shows that 85% of businesses overpay for their variable operating costs to the service providers. But why pay more than you should?
Drew and his team can help you reduce expenses, allowing you to focus on what matters most, which is your business's ongoing success. Research also shows that strong business leaders have a sense of urgency to contain costs at the same time, increasing revenue.
Tips on managing expenses
Stay on top of it
Make sure you set up regular reviewing procedures to ensure expenses are completely updated and accounted for.
Most small businesses, especially the new ones must keep lean and mean in order to get off the right foot. So managing expenses is an integral part of this mindset. It's imperative. You can't ignore the small expenses that end up adding up and chipping away at the bottom line.
Be ruthless with overhead expenses
It's very important to scrutinize your overhead, investigating new technologies for phones, payment processing, shipping, utilities, and waste removal is pivotal in keeping costs down. When you operate as thinly as possible in these areas, it frees up more money to optimize your operations and improve your products and services. More money in your budget, more things you can reinvest into your company.
Be aware of the inventory
We all have an inventory of something in some way shape or form in operating our business. And it's crucial to set up some type of tracking system. Because excess inventory is a drag on any small business and likewise sparse inventory may impeach sales and again missing inventory is not an expense you want to encounter. So inventory is simply cash sitting on the shelf so you don't want it idling too long. Factor in shipping expenses for your products and that's something Drew can help you with.
There are many competing freight services and it pays to compare several and to reevaluate often. So once a business owner decides “I gotta work on my expenses at the same time as my revenue, what do I do next? Do I keep it in-house?”
Benefits of Outsourcing
Many business owners are reluctant to outsource or to hire outside help for a variety of reasons, especially small business owners. They may be afraid they’re going to lose control or look vulnerable. They worry that the person they bring in won't have their best interest at heart and eventually will cost some serious money in the long run.
Small, medium-sized business owners fall into the trap of thinking they can do everything themselves,, but if you identify the tasks that you can outsource and seek those professionals who are experts, it will really help you realize a ton of benefits.
4 key benefits of working with Drew :
TIME is the scarcest resource in today's economy. An outsourced expert can save you substantial time by handling tasks that interfere with the work you should be doing and your staff to make your business thrive. Why just add on expense reduction onto an existing staff person who may not have the background or the time to be able to do it. Have that person work their strengths on your core business and outsource.
MONEY is another benefit. By mitigating operating costs, we often mistakenly think that the cost is too high to engage an outside consultant. In fact, it's far more economical than hiring full-time staff members to handle the task. Also, if you can find an outsourced expert who does multiple things in multiple cost categories you're not there hiring five different outsourced vendors.
Enlisting the help from experts also gives you the security and peace of mind knowing you've got somebody watching your back and that you're making the right decisions and taking the right steps to take care of your business. It's always nice to have SECURITY knowing you've got EXPERTS looking out for you.
As an independent cost reduction consultant, Drew has got skin in the game and no kickbacks for vendors. They act as a watchdog for their clients. Once you get to work with them, that means you have somebody who has specialized knowledge giving proper advice tailored to your specific needs. They give specialized service to the needs of their client, with no cookie-cutter approach.
Q&A with Drew
Q: What size of business or how much expenses do they need to have before you can work with them?
A: We do set small qualifiers because we save up to 30% on people's expenses. You need to be spending at least $750 a month on telecom, that could be internet, phone, voice over IP, and web conferencing. If you get paid by credit card processing, you should be at least bringing in revenue of $20,000 or more per month or $240,000 a year for us to be able to look at your processing fees. We also have those minimums like shipping 200 bucks a month and if you're shipping stuff with FedEx and UPS $750 or more per month. We scale it up with utilities, so it all depends on the size of your operation. We do our best to save on energy costs.
There's a lot of competing priorities for businesses and it’s time to really act, don't put it off to reduce your expenses. Saving money should not hurt it. It should be easy and the process must be painless.
Sales, growth, and market penetration are so important and crucial in every business. But if there's no money to do those things a business won't last. So in order to manage your expenses and ensure healthy and sustainable growth, you must stay on top of it.
ABOUT DREW DERANEY
Drew Deraney is a Cost Reduction Consultant at Schooley Mitchell who aims to help businesses increase their profit by reducing expenses. His mission and vision are to provide high-quality, professional consulting services to business clients and be a trusted advisor in the community.
Watch other videos below:
- Solidify Your Future: Act Now
- SAVING MONEY SHOULD BE PAINLESS - Our Process
- Drew Deraney - The Benefits of Schooley Mitchell
- Drew's Trusted Advisor channel
- Drew Deraney - Interview with Desirae Haluk
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