Regularly review your expenses
Are you paying too much for your subscriptions, memberships and insurances?
Are you paying for subscriptions you no longer use?
Have you considered your loans and the interest charged?
Are you actually paying the price you were originally quoted?
These are often viewed as “insignificant in the big picture” but when you delve into the detail you may be surprised at the results!
The Challenges:
Sometimes business owners can be “loyally blind”! What does that mean?
You let things renew even though you’re not using them OR, even worse if they are not giving you or your business value!
A prime example of this is memberships. Do you remember signing up for that course that you were completely committed to, the one that would change your entire business? Fast forward 3 months and that course hasn’t been opened or looked at again! The year rolls on and next thing you know you have been “automatically renewed” and, as if that’s not bad enough, ping… it’s been debited from your account!
Did you know that most insurance companies offer a “new member” discount? When it renews a year later, the renewal can be up to 40% more than when you first signed up!
When you look at your bank statements what rates and percentages are you being charged? When you think back to your original conversation with your banker did, they offer you an “AWESOME deal” to ensure that you moved your accounts and loans across to them? How does it feel now knowing that you are being charged the same as “every other client”? Not great!
The challenge in this space is often business owners are so busy looking at the big picture they forget about the small things that very simply add up.
The Solution:
Take the time to review what you are committed to and negotiate, cancel or accept the value of what you are receiving.
- Memberships and subscriptions:
Take the time to establish which memberships and subscriptions you currently have.- Do they automatically renew?
- Do you want them to renew?
- Check the dates of renewals so that if they renew automatically, you can either give the relevant notice of cancellation OR ensure you renew because YOU want to renew.
- Insurances:
Explore the market and regularly compare deals. You will usually always be offered a better deal by going to a new company.
The tricky part is by changing suppliers you will need to fill in ALL those dreaded forms once again and of course you need to make sure you are comparing “Apples with apples”. You want to ensure you’re getting the right cover at the right time for the right price.
HOWEVER, being armed with information allows you to negotiate with your current insurer! Remember it is easier to KEEP a client than it is to get a new one!
3. Loan and banking charges:
You can and you should negotiate each and every year!
This is an easy one, you can call your banker and review the rates you are being charged.
Remember that when it renews the bank will automatically charge the highest rate at that time.
By getting a competitive offer in writing you are often able to negotiate with your bank to match or better the deal!
It does take time, it does take effort but the savings are often worth it!
The Result:
You can generally save yourself hundreds of dollars per month! All money that can be reinvested in your business or you can spoil yourself.
Is Your Bookkeeper playing their role
Your bookkeeper should play a key role in assisting you managing your cash by
- Certainty: keeping your records accurate and up to date so you have certainty around where you are spending your money.
- Plans: work with you so you know what is coming up for renewal to avoid those “nasty surprises”.
- Pricing: negotiation of prices and terms with suppliers to ensure you are getting the best.
