It is the aim of every business owner or entrepreneur to make profit
but most of them end up spending more than they make resulting to a
loss. As an entrepreneur or a business owner, one of the major key to
success is discipline which is a very difficult act to master. Reduced
expenditure in every venture will surely lead to a higher return and
profit in the long run.
Plan Your expenditure: The First step in reducing
expenditure to maximize profit is to plan your expenditure every month,
week or quarter and try as much as possible to keep to your plan. Any or
unplanned spending should be avoided unless in cases of emergency or it
is practically inevitable. Planning also helps you monitor how much
profit you make from your business per/month. Because all your expending
is plan, you know exactly how much you have .
Make a Budget: making a good budget that can cover
all your needs, both professional and personal can help you watch your
spending and maximize profit. If you know how much you have to spend
every month, you will be motivated to spend it wisely and on useful
things. Make sure your budget is not to low or too high for you. If it
is too low, it may not totally be disadvantage because you get to learn
how to use little money for longer time.
Keep Records: Take note of all your expenditure and
write them down if possible. Take note of everything even the minor
ones like recharge charge because most time I accumulate in to
thousands. At the end of each week check out your expenditure, and
evaluate your spending. Strife not to spend as much as you did in the
previous week, even though it is as low as $5 or N800 difference it
matters.
Only spend when necessary: To reduce your spending,
you have to take note of what you buy and what you plan on gaining from
buying the commodity. Buying a commodity because your friend has it or
because it is reigning at that time, is totally unnecessary especially
when you don’t need them. That is not wish spending.
Discipline Your body and Mind: You should be able
to deprive yourself of some certain pleasure, and do more profitable
things with your money. You can use re-investing any money with you to
reduce the money in your hand because the more money a person has the
more he feels like spending.
Have in mind it that will take a while before you can make the
adjustment needed and start. It may seem difficult at first but with
time you will get used to it and you will see the changes in the size of
your business
source: credit to the original Aurthur