Hidden Financial Drains: The Silent Vacuum That’s Killing Your Business

HIDDEN FINANCIAL DRAINS
The Silent Vacuum That’s Killing Your Business

You might think you
know all about your
business’s financials...

...but what if there were
some unnoticed money
sinks that are slowly
killing your business?

Learn about some common
hidden financial drains and
make sure every penny you
spend isn’t being wasted.

HIDDEN DRAIN #1
Website Hosting

The majority of small to medium
businesses can run a very successful
website with inexpensive hosting that
nearly every hosting provider offers.
Ryan Hulland
President, Netfloor USA Access Flooring

Why pay $50 a month for a VPS or $200
a month for a dedicated server, when $9
a month hosting offers everything you
need, and probably more?
Ryan Hulland

Of course, ask your IT department and
web designers if the hosting package
will be flexible enough for your business
apps, but this switch could save
hundreds of dollars a year.
Ryan Hulland

HIDDEN DRAIN #2
Internet Bandwidth

Does your business need 10 Mbps? 25
Mbps? 50 Mbps? Cable companies like to
make comparisons with their internet
packages based off of how many movies
you can stream at the same time.
Ryan Hulland

Let me tell you, if you have a handful of
employees streaming Netflix at work
and it’s overloading your 10 Mbps
connection, you’ve got a bigger
problem than your internet bill!
Ryan Hulland

HIDDEN DRAIN #3
Unnecessary
Subscriptions

One financial drain for businesses is
smaller cost subscription services that
were initially experiments, but then
you forget about them and the
ensuing monthly fees.
John Turner
CEO, UsersThink

What catches you off guard is when
they’re smaller costs, because the larger,
more expensive ones stay top-of-mind,
so when they don’t work you know to
cancel them.
John Turner
CEO, UsersThink

The main issues I see over and over
again relate to software/subscription
services that our clients no longer use.
We even had some who were paying for
the same software twice a month!
Gabe Lumby
CPA, GabeLumbyCPA.com

To remedy the problem, I will have
the business owner create a separate
category on their profit and loss
statement for software expenses.
Gabe Lumby

Each month, we review the spending to
make sure that the software services
being paid for are actually being used
or are worth the monthly expense.
Gabe Lumby

HIDDEN DRAIN #4
Forgetting to Cancel
Accounts

We switched security system providers
for our office to a better and less
expensive provider. Their customer
service and response times are much
better.
Ryan Hulland

But, we forgot to tell the old provider we
wanted to cancel. Many months went by
before the mistake was caught. This was
such a silly, easy to fix item, yet it went
unnoticed for months!
Ryan Hulland

HIDDEN DRAIN #5
Management Doing
Low-Revenue Tasks

Entrepreneurs can drain their business
financially by sending too much time on
low revenue generating tasks, tasks easy
to delegate, and not keeping their key
critical business numbers top of mind.
Dr. Roshawnna Novellus, Ph.D.
President, Novellus Financial

By structuring time based on revenue,
specialty, and strategic objectives,
business owners can generally
immediately decrease wasted
expenditure by 20%.
Dr. Roshawnna Novellus, Ph.D.
President, Novellus Financial

HIDDEN DRAIN #6
Transaction and
Merchant Fees

Transaction fees can be a big financial
drain that small businesses might
not normally think about. On large
transactions, they can make a serious
dent — you might lose hundreds of
dollars on a large merchant payment.
Marc Prosser
Publisher, Fit Small Business

You can decrease these by encouraging
buyers to use less costly payment
methods. That might be an ACH deposit
instead of a money wire, or an electronic
check instead of a credit card payment.
Marc Prosser
Publisher, Fit Small Business

It often takes a team of two or three
people to find these hidden costs:
someone from accounting to pull
reports, plus people from the
appropriate departments to decide
if those costs are needed, can be cut
back, or eliminated.
Ryan Hulland

My advice is to set aside at least one
day per month where you and your
accounting team can go through
the bills. Pull in the appropriate
departments and decide if that
expense needs to be fixed.
Ryan Hulland

When it comes to hidden expenses, the
only sure way of fixing them is to shine
light on them and tackle them one by
one. It’s not going to be easy, but the
positive effects can be huge!
Ryan Hulland

WORKetc. It’s more than a CRM.
www.worketc.com
Click here to check out the WORKetc blog
for more smart and practical business advice.

Hidden Financial Drains: The Silent Vacuum That’s Killing Your Business

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Hidden Financial Drains: The Silent Vacuum That’s Killing Your Business