Do You Overspend in Your Business?
We recently had the pleasure of consulting with a client who truly values his employees and shows it by how much he pays them. While we absolutely love working with generous people and business owners who prioritize their teams well-being, this particular client was paying a bit too much.
Business owners, it’s essential to have a clear understanding of your gross income. After subtracting your Cost of Goods Sold (COGS), which is the cost of delivering your product or service to your customer, you get your gross income. From there, you need to cover all the costs of owning a business: vehicles, insurance, marketing, and more. If your COGS is too high, it can limit what you can invest in these other crucial areas.
There are two primary ways to address this issue:
- Lower your expenses
- Raise your prices
Sometimes, a combination of both is the best solution.
If you are like our business owner client and need help identifying if you are overspending in a given category, give us a call. We’re here to help you optimize your expenses and ensure your business thrives!
