Do you want to make more money? Then check out your AP accounts: do you know where your money is being spent? Kind of important to know. You may be making money hand over fist, but if you have more going out you’re still failing in business. So do you know what is being paid out of your accounts payable?
Spend it to make it
There is an adage in business that says you have to spend money to make it. On many levels that’s true. You can’t make money unless you spend some marketing of yourself and your business. You can’t make money if you don’t spend it on the equipment and supplies you need for jobs. You certainly can’t make it if you don’t have a means to get yourself to jobs. The problem occurs when you are spending more than you are making, or have no idea what you’re spending.
Like your home, your business should have a budget. Like your home, your business should follow that budget. Knowing what you are spending now can help you know if you need to look for less costly options for the things you need for your business.
For instance, do you need to have the best and fastest internet or could just a touch slower and less expensive do the same job and save you money? If your utilities are suddenly much higher can you shop around for better rates? Better yet do those higher utility bills tell you that you need to turn off the lights or turn down the air conditioning (or heat, depending on the season). Using a fan or wearing a sweater to keep them lower (just like at home) can add more to your bottom line.
Quality over price
A few areas to place quality over price would be the supplies and tools you need to use on site. Don’t endanger your customers to save a buck. If they know they are getting the best they will refer you and you WILL see more business.
Knowing your AP accounts well will help you make more money, so go look… NOW!