Reducing Business Expenses

Analyze your initial expenses. Were there any purchases made out of necessity in the beginning that could now be optimized?

“A lot of these expenses are based on how much you do in volume or revenue... they start up, they're working fine, they get busy, and they don't want to take the time to study it, but they can be overspending tremendously by just starting it up and never doing anything with it.”

Gain a clear understanding of your business expenses. Don't let intimidation prevent you from understanding where your money is going.

“Not understanding expenses in general or being intimidated by them... they don't take the time to understand exactly what they want, how to use it; they don't understand, hey, there's multiple vendors that take care of this for me, so they wind up overpaying because of that intimidation, that fear, that whatever.”

Conduct regular audits to identify and correct overspending. This proactive approach is key to long-term cost management.

“They don't ever audit it because they don't have the time; they don't understand how to audit their expenses.”

Learn to differentiate between essential and non-essential expenses. Prioritize spending on what truly drives business growth.

“If it isn't necessary in order to keep your business running, if it isn't uh necessary to make your business efficient, or it doesn't make your business grow, then it's probably a non-essential expense.”

Implement effective financial management practices. Regularly review your P&L statement to understand your financial health.

“By studying it, at least on—I'm saying minimum quarterly—I would look at mine monthly, and probably I'm looking at it every week to see my month's coming out, but understanding how your P&L's shaping, what your expenses look like.”

Create a financial cushion for unexpected expenses. This will help you avoid stressful situations when the unexpected arises.

Learn about different business credit options available to you. This can be another tool in your arsenal for financial stability.