If someone reached into your pocket, took out a wad of $20 bills, and ran away, you’d appropriately take immediate action and call the police.
But what about the money your business loses every day?
Sure, you can’t exactly call the police due to your business expenses, but these costs can represent bigger losses than mere increments of $20. For some businesses, hidden costs can be the difference between red and black ink. And if you know where to look for these hidden costs, you can take the “immediate action” you’ve been lacking every day at your office. Let’s identify some of the most common hidden costs we come across at SIB Fixed Cost Reduction.
One of the simplest ways to determine whether or not you have hidden costs is to look at all of your bills and ask: “Is this worth it?” Some expenses can be cut outright; others can be reduced to suit your business’s uses more appropriately.
Excessive phone and Internet service is one of the most common expenses that fit this “bill,” if you’ll pardon the pun. Some companies can call up their provider and sign up for a less expensive rate; others would save money by switching altogether. Whatever the case may be, it’s important to look at your own usage and ask if there more affordable options available.
It’s one of life’s little ironies that money around can get expensive. Excessive banking fees don’t only take away money from your account, but they’re hard to identify and tackle. After all, if a bank is subtracting fees, it’s very easy to give in. Who wants to fight a bank?
Like so many expenses, however, banking fees are negotiable. And there are other banks in the world that would be glad to manage your money for fewer and less expensive fees. Remember that even when it comes to banks, your business is still the customer.
Whether you’re subscribing to Software as a Service (SaaS) programs, monthly Internet-based expenses, or simply forgot you’re paying out the nose just to keep your lobby stocked with magazines, subscriptions are monthly expenses that need to be put under the microscope. SaaS is a frequent offender here, as many services create billing tiers that force customers to use their product more frequently in order to justify the expense.
See if there aren’t lower payment tiers for which you can sign up, or consider eliminating certain subscriptions entirely if you can get by without them.
You might not think that any of the above applies to your company, but at SIB, we’ve found that over 98% of our clients do have expenses that can be reduced. And because there’s no cost to working with us unless we help you save money, you can be confident that you’re either in store for some immediate cost savings…or else you’re already doing a great job at handling your expenses. Either way, contact us to find out if there are any “blind spots” in your company that are costing you money.