Periodically, if you want to boost your profit you can do so by simply plugging money leaks. It happens to all businesses eventually; they find they’re wasting an enormous amount of money on something they even forgot they were spending money on in the first place. This can happen to all kinds of businesses, whether bricks and mortar or solely online.
Forgetting about Recurring Memberships
We all do it. We see an awesome service that is recurring and we buy it. It might be a magazine, a podcast, a membership for content or anything else that we pay for but do not use. If you use it, then it’s worth it. If you don’t, it’s a money leak.
Don’t assume that you should just get rid of such a service, though. Try to remember why you signed up and if it’s still a good deal, put into your calendar time to use the products and/or services provided by the membership. If after 90 days you still aren’t using it, cancel it.
Too Many Fees and Charges
Some fees cannot be avoided. You’re going to pay fees to use third party payment processing, and fees for many other things. But, you can research and find out what the lowest fees are to avoid paying too much. At least yearly, check the fees each service is charging and compare to the fees of another. For instance, bank fees vary widely. If you can save just 100 dollars a year on bank fees, that’s an amazing savings.
Paying for Duplicate Technology
As technology improves, you might find that you’re paying for multiple pieces of technology when you can just pay for one. A good example is invoicing software. You might pay for FreshBooks.com, along with GoDaddy Bookkeeping, and also use Basecamp.com. Do you really need all of these services? And what would happen if you chose something new that does everything such as Vorex Project Management?
Not Using Service Providers Properly
Have you hired a virtual assistant but you barely ever give them work? If so, you’re not doing it right. Many people refrain from sending their VA work to do because they worry about sticker shock. But the truth is, if your VA is an expert in something that you’re not, it makes sense to give them the work. He or she is going to do whatever it is much faster and at a rate less than you make per hour doing the thing you do to make money. It just makes good sense.
Not Taking Tax Breaks
So many business owners try to do their own taxes, but with varying degrees of success. If you hire someone who is an expert to advise you on these matters and keep you on track throughout the tax year, you will find that a good tax person is worth their weight in gold. Plus their services are also tax deductible.
Finally, if you have a problem finishing what it is you start, you’re wasting a lot of time – and likely money too – on just messing around. If you want a real business, and not a hobby, treat yourself as good as you expect any vendor or service provider to treat you. Before you know it, your business will be a lean, mean, money-making machine that’s as tight as a drum.