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Control Your Operating Expenses
Take care to review your operating costs. Following are some ideas that you may want to implement which would lead to reduced expenses and an improved bottom line:
Substitute some of your paid advertising with "free" advertising. Press releases are a perfect opportunity to get the word out about your company. Distribute regular press releases to your local media. Make an effort to introduce yourself to the editor that selects what press releases get published as well as the editor of the business section or home section of your local magazine. You want the editor to quote you every time they run an article about home building or remodeling.
Develop a system to track your lead source and closes. Put your money into the area where you will get the biggest "bang for the buck".
Control meals and entertainment - remember Uncle Sam only lets you take 50% of these costs as a deduction.
Control overtime - is it really necessary, would you be better off putting an employee who regularly works more than 40 hours a week on a salary instead of paying overtime.
Keep salaries low and supplement with an incentive program.
Challenge your benefit package - you may be offering some benefits (i.e. disability and life insurance) which your employee's really don't care about. Have your employees share in the cost of health insurance programs.
Review your workers compensation classifications - make sure your employees are classified based upon the work they are performing
Get your sub to handle the warranty or call back that they are responsible for or do the work yourself and back charge them for it.
Compare the costs of providing a company vehicle versus having your employees use their own truck and giving them an auto allowance or mileage reimbursement. Be sure to factor in all costs of the vehicle (i.e. interest and depreciation as well as operating expenses).
Control authority over company gas cards - track what each of your employees spend on gas - is it reasonable for the amount of driving they are doing on company business.
Keep your vehicles maintained on a regular basis to decrease the likelihood of major repairs.
Minimize your cellular phone usage, monitor your office and cellular phone bills - examine the possibility of going to a "calling plan".
Review your subscriptions. Are you getting any periodicals you are paying for that you no longer read?
Challenge your insurance - does it include any unneeded coverage? Are your employees in the proper risk category for computation of your workers compensation and general liability premiums?
How are your using your outside professionals? Do you see your
CPA only at the end of the year to prepare your tax return or are
you using him as a business advisor to help you understand your
financial information?
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Official Charity of 2008
Remodelers Advantage Inc.
535 Main Street, Suite 211
Laurel, MD 20707
ofc: 301-490-5620
fax: 301-498-6869
Info@RemodelersAdvantage.com