Why you should conduct cost reviews annually.
What are cost reviews?
Simply put they are a review of your costs conducted annually, because you don't have time to do it monthly as a small business.
Big corporations do this annually. Negotiating contracts and cutting out redundant costs that no longer apply to their business. It makes news during a recession because news sources love the story to coincide with a looming recession, but the truth is, this practice is conducted regardless of economic situations.
What should you review? Software, payroll, phone contracts, shipping costs (things are changing so quickly and there may be cheaper alternatives you need to investigate) credit card fees and benefits, banking fees and interest rates. Subscriptions (maybe you never canceled a free trial and are getting charged for something you are not using).
Evaluate what is still worth it and what is no longer relevant to your business. These cost reviews can account for up to 5% annually in savings. A 300k business can save up to $15,000 a year just by scheduling an annual review.
Schedule a date during your slowest month to do this. Be sure to add it to your calendar and then set it to repeat annually.
A Business Coach can help you with your cost review and so much more. If you are in need of business consulting, coaching, advising or mentoring, then reach out for a free consult by clicking here. If you are in the Toronto area, the option to meet in person is available.
