Supply chain difficulties, rising interest rates, inflation. What do they all equal? Higher costs. The past two years have been a crazy time, and I know it’s hard to interrupt the gravy train when you’re in a sea of refinances. That flurry of activity is behind us now, which is why this is the ideal time to revisit your P&L.
Don’t let rising costs catch you off guard and eat away at your hard-earned profits. Do a line audit of the first quarter, then see how this second quarter is stacking up. Where can you cut costs? What services aren’t really serving you anymore?
Subscriptions on Auto-Pilot
It’s also important to check on your subscriptions. Have their costs quietly increased? If so, it may be time to call the provider and negotiate a better rate…or jump ship to a competitor. If you are stuck with a higher monthly cost, make sure you’re maximizing the value of that service. Learn how to leverage their technology, thumb through their tutorials until you find a useful skill that could benefit your business.
Don’t forget to review your office expenses as well. Take a look at your office space, furniture, and equipment.
As I’ve mentioned, video marketing is important, but converting an unused bedroom into a broadcast studio when you record 95 percent of your content outside is not. If you can justify the ROI, then a cost is worth it. But you may find that a line audit reveals a few “bells and whistles” that aren’t worth their weight.
Reviewing all of your costs will allow you to trim the fat and keep the profits. You’ll need them as costs continue to creep up.