It’s summer but that doesn’t mean you can slow down. Use this time to take a good look at where your money is going.
4 Ways To Organize Your Finances This Summer
Summer is almost here. Most small non-seasonal businesses will experience a decline in activity especially during July and August. This should free up at least five hours per week that can be dedicated to those tasks that seem to sit perpetually on the “to do” list. Many of these tasks can have a material impact on your company’s bottom line. So instead of surfing Netflix and Hulu on that quiet Thursday afternoon, take time to do the following:
1. Review all of your subscription-based and recurring expenses
Many subscription services use automated renewal billing. We sign up for a service and once a month or once a year a renewal charge appears on the credit card or as an ACH transaction that deducts the charge from our checking accounts. Simple things like domain names bought “for that new business idea”, trial versions of software and membership fees can quickly add up. Cutting just three or four unused services could save over $1,000 per year.
2. Negotiate down one fixed expense
This is a good idea for several reasons. Mainly you’ll save money. Many large vendors are willing to provide a discount in order to keep your business. Even if they aren’t, use this as an opportunity to practice different techniques for negotiating. Use both positive and negative arguments. Step outside of your comfort zone and be more aggressive than you normally would. Practicing these techniques on a potential customer is riskier than doing so with a vendor who can usually be replaced. If you aren’t able to secure a reduction in cost, try asking for additional services or “store credit” instead.
3. Meet with your banker
I recently wrote about the importance of having a good relationship with your banker. Do you have any relationship with your banker? If not, start building one. Invite them for coffee or lunch even if you don’t have a specific financial need in mind. When properly utilized, it could be one of your most valuable relationships. Think about how many businesses a small business banker interacts with per year. Getting five or ten referrals from your banker is a completely realistic goal. Remember that relationship managers have some authority when it comes to making decisions on fee reimbursements and account upgrades.
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