All opinions are mine and mine alone! Guest post.
Keeping It Simple Is Good For Everybody
The Costs Of Business
It doesn’t matter how well-vetted your business model is, how long you’ve prepared, or how exceptional the services you offer are. Eventually, you’re going to come against unexpected exigencies that could “knock you off the rails”, as the saying goes.
Common expenses associated with running a small business include licenses, permits, dues, office space, utilities, equipment, maintenance, upgrades, employees and the benefits that go with them, insurance, inventory shrinkage, payment delays, the expense of poorly used time, professional services like legal fees, and the costs associated with allowing customers to pay with credit cards. For a more in-depth examination of each listed expense, here is a very helpful article.
A Snow Cone Summer
These expenses can apply to any business. Say your plan is to run a snow-cone stand outside the public swimming pool every Summer. Well, you’re going to need that stand available at the pool five days a week. If you can keep it there seven days a week, that’s an extra eight days’ revenue you can add to monthly profits.
If there’s a rainy day in the summer, you’ll need that extra eight days’ pay. Additionally you’ll need to keep the paint job on the outside of your snow cone vehicle inviting in appearance. You’ll need to keep the vehicle maintained, too, and have a proper selling license to give the snowcones to kids looking for refreshment in the hot day.
Selling requires a license, and there are taxes involved. Additionally, the flavorings and snow used for the cones must be sanitary. The equipment used in maintaining the temperature of the ice must be regularly maintained, and syrup dispensers must be cleaned.
You’ll need to be insured should the worst happen and that sickly child from the vegan couple catch a cold that causes them to blame you and litigate. You’ll have to build up a cushion of profit so you can take a loss over a year if the rain decides to stay all summer. Thankfully, there won’t be a lot of cost involved as pertains to office space or employee expenses, but if you get sick, or need some Summer vacation time, you will need a fill in.
These days many companies are notorious for having operational parameters which incorporate old means of infrastructure. Consider payroll, as a for-instance. Granted, this department is absolutely necessary for any business; no matter how big or small. The problem is, payroll often has too many people. At least, in light of today’s technological possibilities.
With online solutions today, timekeeping can be accomplished immediately, and monitored continuously. On line time clocks are changing the way businesses are run. With the right online service, you can curtail the amount of employees required to run your payroll department. Shoot, you may be able to eliminate this department entirely and handle it yourself. Many small businesses do just this thing, but it still takes substantial time to tabulate. With the right online timekeeping software, suddenly the process is as simple as copy-pasting information, printing checks, and signing them.
Consolidation of Expenses
If you want running a business—large or small—to be a good experience–if you want it to be “peach”–you’re going to need to consolidate resources as much as possible on a continual basis. Waste not want not, as the saying goes; and applying this methodology to your business conduct will likewise ensure continued profitable operations. If you can curtail as many unnecessary expenditures as possible, you can take those portions of the budget that were tied up and devote them to something more lucrative.
Title: Super-Connector at OutreachMama
Wendy is a super-connector with OutreachMama and Youth Noise NJ who helps businesses find their audience online through outreach, partnerships, and networking. She frequently writes about the latest advancements in digital marketing and focuses her efforts on developing customized blogger outreach plans depending on the industry and competition. You can contact her on Twitter.