Its funny, I look back and I see several stages of my business life. I remember working on a project and just scraping by to make it all happen. I somehow was able to put together a couple contacts that landed me a huge contract. I was so excited! I had a real big company and a great contract!
The problem comes when the money was deposited. I saw the new balance and began reasoning with myself, I “NEED” to buy this to run this project. All of the sudden I found the word “NEED” when it had not been there. Truth is, if I did “NEED” these items I purchased, I could have probably rented them from someone and saved the cash.
Looking back is always easy. Nowadays, I think long and hard how much money I have to put out and what my return will be. If I put out $1.00 then I should be able to get at least $1.50 if not $2.00 back. This process is otherwise known as making a profit.
I am not saying that you should do a job half way and get cheap product. I simply mean that you need to look harder and smarter to help stretch your dollars. If you keep your overhead down you will notice as you grow that it is easier for you to make decisions.
I know several people who live out of a country club or even their home office. If you have discipline that is a great option. For others, they need some sort of structure. What the greatest expense you have in your business? How can we try to eliminate that or reduce it?
Are you in debt? What is it that you bought? How can we get that down? Let me know what you are doing and we can come up with some great ideas to reduce those expenses!