You’ve finally done it! Owning your own business has been your dream for as long as you can remember and now with a new enterprise to call your own you can finally sit back and let the money roll in, right? Wrong. Creating a lean, efficient budget and continuously improving your business’ spending is a "keystone habit" that can affect nearly every single aspect of your organization. Owning and operating a business is no simple task. When you optimize your budget, not only are you saving money, but you’ll also be able to spot key trends and metrics indicating where you should allocate your resources. Therefore, here are a few surefire methods to optimize your business’ finances and even your personal budget.
The very first thing that you can do is to maximize your utilities. For example, let’s say that you are going grocery shopping and you see two brands of food. Same exact food quality, but the cheaper brand is offering you more for your money. The wise investment would be to go for the brand offering more. It’s no different for your budget but you’ll get more for your buck. Spend time every single day, even if for 5 minutes looking for opportunities to maximize your personal and professional resources.
For example, if you have employees that are more productive than others, then it’s a wise idea to use a utility maximization equation using Excel Solver to find the optimal budget for your organization. It may seem like a lot of work, but it is more than worth it.
Digital Marketing Optimization
Digital marketing, such as search engine optimization, pay-per-click, and conversion optimization are all things that should have you seeing a return on your investment. If you are outsourcing, make sure that your consultant has a predictable growth plan for your company so that you aren’t wasting your money and time.
Consistency is the name of the game, and if you can master this principle alone, you will be successful in your business. If you are just starting your business, then consistency means applying a little portion of your day, every single day to budgeting, cutting expenses, and moving around numbers. As a business owner, you will have to have the ability to charge credit and debit cards with help from high risk merchant account providers. This is a necessary service that every business owner needs to help them manage their finances. With the data gathered from these services you can gauge your improvement easier and make improvements where needed. Even if you only engage in this for a time, try to do weekly and monthly reviews, you will start to see a tremendous change in your business.
Look for the Under Valued
The main reason why Warren Buffet was so successful in his investment adventures is because he’s always able to find the actual value of something before he decides to put money towards it. In a sense, every single asset that you seek to obtain should follow a rigorous critique process in order to find the true intrinsic value. Everything asset acquired should always be undervalued.
Key Performance Indicators
Key performance indicators or KPI’s for short are metrics in your business that directly correlate to your business’ failure (or success). In other words, if you know what your key performance indicators are for your business, you will know exactly what you need to improve in order to reach your revenue goals and where to allocate your money.