A systematic approach to financial matters will allow you to cut your expenses and consequently increase your profits. Much of cutting expenses comes from having a system: a system to collect money to keep track of costs, etc. In fact, most of the time a business with excessive overhead costs will also have a casual system for keeping track of costs and revenues. We will look at several systems that can reduce your costs.
Last month in the first of this three-part series, I identified three principle ways to accomplish the job: raise prices; cut overhead expenses; and generate more business. Although combining all three of these profit boosters will produce even more dramatic increases in your profits, it’s important not to lose your focus and concentrate on changing only a few things in your business at one time. This month, I will focus on the second method, which is to cut overhead expenses.