Cash Flow Crash Course Part Two: 3 Ways To Decrease Your Expenses
Have you ever heard the saying, “You’ve got to spend money to make money”?
That is true in many ways, but we’re tweaking it a bit…
“You’ve got to spend smart money to make money, and you’ve got to decrease your expenses where you can!”
There are three major steps to getting a confident grasp on the cash flow process in your pet business.
Last week, we talked about step one: increasing your revenue in your pet business (and if you missed it, you can backtrack to step one here).
We have two more steps to tackle:
2. Decrease your expenses.
3. Manage your money.
It only makes sense to have more money coming in and LESS money going out, but that’s much easier said than done for a pet biz owner… until now.
Here are three concrete steps you can take today to decrease the expenses in your pet business:
1. Assess your biggest expenses first.
You don’t have to get down to the nitty-gritty nickel and dimes you’re spending yet! You want to look at the big bulk of money going out on a monthly or annual basis and see where you can make adjustments.
This might look like negotiating lower interest rates on your major credit cards or moving debt to a zero-interest rate card. What are you spending on insurance? You can often negotiate lower rates, especially if you’ve been a loyal customer. Talk to your payroll company about lowering fees, or shop around. Is there a company with a lower credit card processing fee? It’s worth looking into– it could save you thousands of dollars annually!
Tweaking your major expenses, even a tiny bit, can make a HUGE difference over time.
2. Negotiate with your vendors.
Your vendors don’t bite (or at least we hope not)… talk to them! Voice your pricing concerns. See where they have wiggle room to help out a small business owner. They want your business, so do not be afraid to negotiate! Purchase when sales are happening to improve your margins, but DON’T over-purchase. Sales will always come back around.
In the Pet Boss Club™, we offer an entire training on how to negotiate with your vendors! Get on the waitlist here.
3. Evaluate your team.
If you have a team, fine-tuning your team management can save you a lot of money.
Are you overscheduling on certain less busy days? Are you properly assessing how your sales team is doing? Are they selling enough to validate having them on your payroll?
Efficiency matters! You want your team to be as efficient as possible so that they are worth every single penny. Evaluate this once a month, or even once a quarter, and be aware of what your business needs to be spending on payroll expenses and where you can cut back and save.
Want to hear more about improving your cash flow? Listen to lesson #2 of the Pet Boss™ Summer School Series here, and episode 16 of the Boss Your Business podcast here!
And that leaves us with one more step to cover… managing your money! Check back next week to dive in.
Learn more with us!
- Need 1:1 support to make massive action now? Book a discovery call with us to see if working 1:1 with Candace is the right fit for you.
- Get on the waitlist! You’re passionate about pets. It’s time to have a business that supports the life you want, too! Learn the specific techniques to find new customers, to increase sales and to build a better team for ANY kind of pet business by joining the Pet Boss Club! Get on the waitlist here.