Improve Bottom Line Profitability (Part 1) by Robert Finkelstein

profitSales are up! Time to celebrate! Not necessarily. Just because sales are soaring, it doesn’t mean the company’s profitable. When expenses are not well managed, they can eat up your sales in no time. If the company’s not profitable, future growth is highly unlikely…and staying in business will eventually become a challenge.

In the next few blogs, I’ll offer tips that can help you keep expense down and improve you bottom line (in no specific order).

savemoney1. Business Insurance. You gotta have it…but at what cost? Shop around, know your needs, and do a cost/benefit analysis. Rates are very competitive. Don’t buy more than you need. You can always add when the business justifies it.
2. Employee Insurance. If your company can afford to provide this benefit, when it comes to your staff, give them options. This is an important benefit and you don’t want to be perceived as cheap. If money is tight, provide an allowance. Contribute what you can to their insurance costs.
3. Subcontractors. The advantage of using subcontractors is that you only have to pay for the labor you need. When you don’t need them, you’re not paying for bench warmers. The big savings here is also on payroll tax and insurance.

In the meantime, keep selling…and start looking at cutting these costs. More tips tomorrow.

If you have any questions or comments,
please write them below or email me at Robert@RobertFinkelstein.com.

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