There have been countless successful female-owned businesses that have failed because they let the costs of operating their business spiral out of control. Some of the biggest global corporate companies collapse for this very reason.
So, if it can happen to billion-dollar corporate giants it can happen to small businesses too. It is by far one of the main reasons why 80% of all businesses fail.
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Cost cutting can be a very quick way to increase your bottom line in the short-term. By minimizing staff, and improving the systems in your business, you can immediately impact your profitability.
Constant focus on cutting costs will encourage you to review your policies and practices more often than you otherwise might consider doing.
Another key advantage is that it can improve your ability to boost capital.
If you are approaching a bank, angel investor, venture capitalist or even your next-door neighbor, showing that you are constantly focused on cutting costs will be seen as highly favorable. Being an effective cost cutter can also help you from a downturn in demand for your product or service.
It is extremely easy to live the good life when your business is making good profits. However, it makes wise business sense to reduce costs at every available opportunity. Last, but never least, is that it keeps you on top of things. Isn’t that what it is all about, being in control of your business and not the other way around?
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3 Tips for Improving Your Spending Habits
1. Review Your Finances
The best place to start is to look at how your business is currently being financed. If you have an overdraft, when was the last time you seriously shopped different banks? Too many women business owners fail to recognize that the banks are now becoming more and more competitive. This means that if you approach a few different banks (preferably with an up-to-date business plan) and ask them for the best rates they can offer, you will often find that you can secure cheaper interest rates on your overdraft.
2. Get Virtual Support
Go with virtual contractors for your administrative staff and other staff if possible. With virtual assistants you do not have to pay for extra space, buy or upkeep equipment or software, you can skip payroll expenses and benefits, and you pay for only what you need.
3. Switch to VOIP
Switch to VOIP for your phone system. We got rid of our expensive phone service. The upfront costs were minimal. We set up service and purchased phones and now have a low monthly cost and free calling. The system paid for itself ten times over.
To get more strategies for building a successful and profitable business, visit www.iamcharlottehoward.com
Charlotte Howard is the Founder of the Hair Artist Association with over 4000 members, CEO of Heart Centered Women Publishing, Founder of Wealthy Women Inner Circle and Co-Founder of Wealthy Women Entrepreneurs.
She’s written and published thousands of best selling books. She’s one of the most-highly paid board certified book writing prosperity life coaches, women’s book publishing consultants and influential women’s book publishing expert trainers in the world.
Charlotte has been called by the Information Marketing Journal an “Information Marketing Genius”. Amazon and the Yearbook of Experts named her one of the most influential women in the world of beauty, business and women’s transformational book publishing industries.
She is also in the Top 1% Most Followed Transformational Public Figures In Beauty, Women’s Business and Women Book Publishing on LinkedIn, with over 100,000+ fans across her pages.
Charlotte is a proud homeschooling mom of 4 beautiful kids. She loves the beach, reading, writing and traveling with family and friends. She is an avid Netflix and Amazon Prime lover. Since leaving corporate america she’s finally been able to enjoy a freedom based lifestyle and believes everyone should be able to do the same.
