NO STONE UNTURNED
During the pandemic we started this new phase at the studio to not only find new ways to increase revenue but also to find where and how to save money. While we are all looking for new revenue streams, sometimes the best way to make more money is to plug up the holes in your business where money is pouring out.
Think about it, if you could find a way to save ten, fifteen, twenty thousand dollars or more would it be worth your time and effort? And best of all you wouldn’t have to spend one dime or get one new student to obtain that additional income. That additional revenue could really come in handy don’t you think? So, as you read my recommendation below, I hope you will start to work with the mindset “No Stone Unturned” and really go outside of the box to find additional areas of business expenses and look at where can you save.
In Part I the focus was on credit card processing fees which are one of the big items you may face where you can save a lot of money. If you missed that article, click here to see how easy it is to save 1000’s of dollars a year!
In Part II we will look at other areas where you can save your hard-earned dollars. Keep in mind that you should look at all expenses in your business and see where you can save. Print off a P&L statement for your business and closely examine all of your expenses. Is there anything that you can get rid of or reduce the expense by shopping it around? Remember, that it really doesn’t take that much of your time.
Utilities: This includes electricity, gas or oil, phone, internet, television. There are so many options to save on these expenses and you should investigate who provides these services in your area. We investigated into this about two years ago and we were able to trim $400 off our monthly expenses. I recommend that whatever change you make you get the new company to guarantee the new rates for at least one year. Typically, if you bundle your phone, internet and television you can save even more.
Install LED lights: We did this a few years back and our electric bill has decreased significantly. Now, you do have the initial expense of installing the new light fixtures. However, there are some types of LED lights that you can leave the fixture that you have in place and just replace the inside wiring and they will work just as well. The big benefit is that you won’t have to worry about replacing a bulb or light fixture ever again!
Payroll services: If you use a payroll service, once again there are many out there and some will give you a few months for free if you sign up for a year. This can take a bit of time to set it up but it is well worth the time and energy to save you some money.
Sending out invoices: If your studio still does this, I recommend you stop this practice as soon as possible. The time, energy and postage expense are a BIG cash drain. If you don’t believe it, add up for one month all of the postage, envelopes and paper used and the time you or your staff spend on doing this and multiply it times 12. I know this may not be the best time of year to change how your families pay you but start your new season off by only letting your families pay by credit card that will be withdrawn automatically every month. Yes, you will have fees but if you check out my Part 1 you can save on those by shopping around to credit card processing companies. You could also accept Bank checks or cash but it is so much easier for everyone to have it done automatically.
Other Bank Fees: Checking, overdraft and all the other stuff banks cleverly charge you. There are literally so many choices of banks that I recommend you set up an appointment and go in and speak to a manager to see what can be negotiated. Remember everything is negotiable. Especially if you have been with the bank for a while. Just do some research before you go in and tell them that the fees at another bank are less. Knowledge is power so you need to know what you are looking to reduce. Also ask them where else can they help you save on what you are being charged.
No Stone Unturned: After reading this article I would like for you to look at all of your monthly bills. Is there any other place you can save? Print them off and take a really good look. Next, can you think of any other place that you can save? Cleaning service, staff hours, marketing that is not producing results? Look closely and leave no stone unturned.[SS1]
Here’s to your success!