You look at your balance sheet, ready to tear out your hair.
“Where is all of this money even going?”
It’s one of the most common questions for a businessperson who needs to slash costs and steer their enterprise back towards profitability. And if you find yourself wondering the same, it may be time to break down your expenses down by individual costs—and maybe uncover some costs you haven’t heard of in the process. Here are some of the most common unknown costs when we work with companies:
- 401(k) Management Fees: You’ve probably heard of a 401(k)—the retirement account that allows employees to invest money easily using portions of their salary—but until you set one up for your own company, you might not have been aware of what actually goes into creating Specifically, maintenance fees. Like anything else out there that can be bought, sold, and invested in, it’s possible to choose 401(k) accounts from a number of different vendors, which means you have some leeway in choosing your management fees; yet most companies pick one company and stick with it, never realizing how much money they could potentially save if they were to shop around.
- Grease Traps: It’s not exactly like a mouse trap—but it’s pretty close. Grease traps have to do with plumbing in restaurants that handle a lot of grease; without a grease trap, they’re often stuck with ruined plumbing services and exorbitant maintenance costs. Grease traps often have to be maintained—it’s not the prettiest expense on your balance sheet, but it’s the kind of stone SIB doesn’t leave unturned.
- Computer Hardware Maintenance: Some amount of IT service is to be expected when you run a business that relies, to some degree, on computers. And considering that just about zero businesses these days can say they have no reliance on computers, some maintenance is always to be expected. But what many people don’t realize is that there are ways to save money on common computer hardware; too many companies blindly throw money at the whole “IT situation” without ever examining where potential savings might be had.
- Fleet Leasing: Car rental companies, taxicab companies, utilities, and more rely on vehicles to complete their daily tasks. Fleet leasing costs refer to the money you pay in order to keep these vehicles under your purview—though when most people think about automobile leases, they think of small, single-user leasing terms. Not the case here. There is a lot of money to be saved when you examine your fleet leasing contracts, though many businesses simply sign on the dotted line and wait for the contract to expire.
- Common Area Maintenance Fees: As a business with an office, you have some degree of responsibility for taking care of your space. You acknowledge that. But some places will ask you to contribute to the quality of their common areas, including lobbies and greeting rooms. It’s possible to negotiate these fees down, if one were so inclined—but it’s the kind of thing that SIB Development usually digs up that business owners never thought to look at.
If you think you might suffer from some “unheard-of” costs in your own business, contact SIB Development. We’ll gladly schedule a quick review and let you know about our low-risk methods for uncovering the mystery costs that are present in your company.