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Give Your Business Longeivity - Cut Down Your Expenses

Once your business is up and running it could be to your benefit to re-evaluate the structure and ongoing elements of the business. Things never turn out as you expect them to so it can only be to your benefit to take a step back. Look at how you thought things would be, then look at how they have actually turned out, and make some adjustments. You may have budgeted some money for certain expenses and you will need more then originally anticipated. Other operating expenses could turn out to be less necessary. It is these expenses - the superfluous ones which you should debate, it might behoove you to cut down on those costs as the money going into them might go to better use elsewhere. For us, we have a special line for phone calls from Ekaweeka users, as it turned out we already had enough phone lines and most users didn't bother with calling us since they knew email worked just as well. So we killed one of the phone lines. We were advertising with Google Adwords, this has worked with other businesses in the past but in our particular sector our word of mouth and viral marketing worked dramatically better then the pay per click advertising. Things like the Adwords and Phone lines can be over looked they don't cost a whole lot on their own after-all but when you start to put them together you realize there is a considerable amount of money going to them.

So make a point to analyze your expenses, figure out what is working best, what isn't getting enough funding, and figure out where you're money is not being used properly. This is where many businesses make or break themselves, with smart budgeting you can weather tough times, in others you will have extra profit simply because you were careful.

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This page contains a single entry from the blog posted on May 11, 2007 2:34 PM.

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