BUSINESS
THOMAS GILMAN Strategic-Partner Schooley Mitchell thomas . gilman @ schooleymitchell . com | www . schooleymitchell . com / tgilman
NEW ( AND EXPERIENCED )
BUSINESS OWNERS –
Be prepared to tackle unexpected operating expenses
Opening a new business is an exciting and proud moment for every new entrepreneur . You ’ ve probably put a lot of consideration into a financial plan that accounts for the expense of the services or products you offer , and how to eventually become profitable . However , even the operating expenses you think you ’ ve fully accounted for may come with unexpected costs .
Here are some expenses to consider , and some advice for how to best tackle them . Billing Errors In our experience , it is not uncommon to find errors in a business ’ telecommunications bills . That ’ s just your phone and internet services . With all your vendors , across all the services you need to operate , it ’ s important to make sure you ’ re not being charged incorrectly .
It is not uncommon to find errors in a business ’ telecommunications bills .
It ’ s never a bad idea to scrutinize exactly what you are being charged for on your bill and ask for clarification if need be . Having a third-party audit of your expenses can also go a long way in eliminating billing errors . Redundant Services More often than you might expect , services you need are packaged together with services you don ’ t . Sometimes vendors will make it seem like your only option is to pay for bundled services ; and while some bundles are great , others can feel like you ’ re being saddled with a service you never asked for . This can be especially overwhelming if you ’ re already dealing with all the stress of launching a new business .
You don ’ t have to pay for the first , most expensive bundle you are quoted , from the first vendor you contact . Explore your options . Paper Waste In the pre-pandemic world , data estimated that the average North American business spent three percent of its revenue on paper , printing , filing , storing and
maintaining files . Likewise , 50 percent of business waste was composed of paper products . This is a huge expense , and one that often goes unnoticed , all the while eating into your profitability .
In the pre-pandemic world , data estimated that the average North American business spent three percent of its revenue on paper .
You can plan to avoid the cost of paper waste through a variety of methods :
• Do what you can online .
• Invest in services like eSignature , cloud collaboration software , and other such products that make printing and copying redundant .
• Pay bills and checks online whenever possible . Remote working has provided a vast array of solutions that employers can use to move their processes online . Don ’ t let three percent of your revenue get shredded . Payment Processing If you ’ re going to be accepting payments from customers – especially via card or online – you want to make sure you use a vendor who will be transparent and put you in the right rate category . Likewise , if you ’ re using person-to-person , or P2P , applications to accept payments from online orders , you want to make sure you ’ re prioritizing security to avoid payment fraud . Don ’ t overpay . In conclusion , watch out for paying for more than what you need . Being vigilant and consulting with industry experts can go a long way in preventing costs from eating up your revenue .
26 MOMENTUM