Florida is a great place to live and also to do business. Our state is the preferred wintertime getaway for part-time residents and vacationers, but, as summer approaches, local business owners often see their revenues dip sharply.
If you have a “seasonal” business (or you’re a B2B service provider to seasonal businesses) you are keenly aware that you absolutely must: maximize your income during the peak months, then managing your expenses all year…
Explore Cost-Savings for Every Aspect of Your Business
A big mistake that some entrepreneurs make is to leave the concepts of cost management on the “back burner” while they sprint ahead with the promotional side of their business. Why not? Selling your goods or services generates your revenue, (and is a lot of fun) BUT, you need to look at every opportunity to reasonably minimize your product costs, overhead, personnel, administrative expenses, technology, and marketing expenditures.
Often, the biggest cost of a business is personnel. For peak-and-valley businesses, a great solution might be to bring on independent contractors who can help out during busy times. This helps businesses avoid the considerable expense of full-time salaries and benefits during the “off” months. However, the downside to this approach is that those 1099 freelancers may need training – which can be costly.
Another large (but not obvious) expense can be found in your technology. A prudent solution is to avoid buying low-quality items to avoid paying higher repair or replacement costs in the future. The old adage “You Get What You Pay For” is certainly true in this instance. In many cases, it is a good idea to carefully evaluate your needs and seriously consider buying hardware and software that is one generation behind the latest versions. These slightly used (but still high quality) goods can serve your purposes as well as the latest ones with all the bells and whistles, but they may be available at substantial discounts.
You should also look for the best deals available on credit cards. Oftentimes, new entrepreneurs use credit cards to fund the start-up phase of their businesses. The difference in monthly payments between high-rate cards and lower-rate ones can be significant savings. Similarly, shop around for suppliers who will give you the best prices. There is always more than one source (including the online retailers like Amazon, or membership stores like Costco or Sam’s Club) for items needed in a business, so the suppliers have an incentive to keep your business by quoting favorable terms.
Keep Track of Your Expenses
Administrative costs including office expenses can eat into the profit margin of any business. It’s important – from the very beginning of your venture – to create and maintain a good record-keeping program. Keep a sharp eye on all expenditures – even seemingly small, recurring ones like printer ink, postage, and general office supplies. Track every purchase. Run reports often. Then review and reconsider each item, and take action. Look for better prices and advise staff to limit waste.
Maintaining a good system for lowering costs and controlling expenses will go a long way towards the success of your venture, and will help you weather the seasonal fluctuations inherent in many Florida businesses.
The Law Office of Brandon Woodward P.A. is eternally grateful that you have visited our website or read our blog. The materials and information contained here are provided for informational purposes only and are not to be considered as legal advice. For questions about startups, founding documents, corporate agreements, business entities or any other legal issues facing your business, EMAIL US, and we’ll set up a consultation.