As the fearless leader of your business, it’s only natural that you’re laser-focused on the things that drive your business, and the money it makes, forward. You’ve got goals up ahead and your team is working away to reach them.
But be careful – all that drive and ambition can have a downside. When you’re selling well and staying busy, it’s easy to get so wrapped up in trying to keep the everyday activities running that you’d never think of diving deep into the structures you already have in place. However, failure to examine the nooks and crannies of your business can mean that you’re missing out on thousands in hidden profits.
I imagine you could put an extra $100k to good use, right? So, where do you start searching for it? Here are a few ideas:
Look at what you have and how you got it
Do you keep inventory? And if so, how quickly does that inventory move, and how do you decide what quantity to keep, when to buy it, and so on?
Along the same lines, how do you acquire your items (or services), and how effectively are you bidding or selecting vendors? Who do you buy from? Performing a thorough vendor analysis is key to keeping more of your profits.
Keep your friends close – but not too close
It’s tempting to buy from friends or give them a special discount when they buy from you. Likewise, you might be tempted to pay your BFF’s more for the same work someone else is doing.
Be sure that you have structures in place to keep prices consistent, fair and appropriate. Preferential pricing can mean a loss of funds, whether you’re setting the prices or your friends are.
Check the forgotten corners
This primarily refers to consultants you keep around for far too long even though they aren’t providing a valuable service to your company or a return on the investment for those services. This is a habit that can tie up a lot of money just waiting to be deployed more effectively.
On the other side of the coin, look at the subscriptions you still pay for in your organization. It’s all too easy to forget about all those relatively small charges, even though you don’t use the software or product anymore. If it’s not useful, time to get rid of it and recover some of those funds.
Looking into these areas of your business to put extra money back in your pocket is an excellent start – but these are not, by any means, the only places you might find hidden profits. For further ideas on uncovering an extra $100k in your business, read more here.