Related: 5 Ways to Cut Costs in Your Business
Understanding your costs comes first
Studies show that a large portion of small business owners are not aware of their key expenses. Before cutting anything, it is critical to zoom out and get a handle on where your money is actually going.
Labor is commonly the largest expense for small businesses. If you don’t already have clear ROI data on your team’s time, now is the time to set it up. These ROI calculations can vary drastically depending on the role, so if you have KPIs set up, take this time to review those. If you don’t, I’d recommend working with a strategic finance specialist to set those up.
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