Plainly, there are two ways a company can increase its profits – increase the revenue OR reduce the costs.
Most companies will prefer to drive in sales, ramp up marketing or improve brand awareness rather than looking at their company costs. This is because they are not the exciting bit. They are often overlooked, meaning that you have costs pouring out of your business which makes hitting your profit target all the more difficult.
It is important to identify your costs and challenge the value of them. You may have a subscription that you are no longer using or paying for a higher subscription level that you do not need, a standing order that you never canceled or a credit card accruing unnecessary interest.
MAP have recently produced a cost review for one of our clients, where we discovered that they had been paying for inactive Gmail accounts and inactive accounts on Slack. We also challenged the value of one of their subscriptions and they now use different software that has the same features. These three savings alone amount to over £130 a month, that’s over £1.5k a year!
You should be reviewing your overheads quarterly, giving you the time to focus on the changes that need to be made, without it being overkill. The money that you save will be far greater than the time that you spend on the task. Many of these little savings that you find will be monthly costs which will reduce costs greatly in the long term.
Within this task, business owners will be able to see an overview of where they are spending their money and can also make informed decisions based on this.
At MAP, we can provide a quarterly report of all costs and recommendations for making services so that you can take action. The small savings all add up and mean you don’t have to endure such constant pressure on bringing so many sales in.