How to Avoid Financial Pitfalls :: Part 2Wednesday, April 08, 2009
Written by guest expert Tim Gill of The White Box of Wedding Design.
2. Monthly expenses DO add up!
As you manage and consider your business expenses, it’s very easy to let a lot of small, routine charges turn into a large, monthly overhead (the ongoing and indirect costs of doing business). Constant Contact may only be $30 per month, but when you start looking at all of these minimal expenses, they can really add up. Consider your cell phone, internet, fax line, magazines. A lot of these subscriptions are necessary for doing business, but is there anything you can cut out of your monthly budget? If not, that’s okay. Just be sure that you are aware of what your monthly expenses are so that you can properly determine your pricing and goals. Consider where your advertising dollars are going as well. Saundra, of planning…forever events covered this topic very well in her guest posts on calculating your advertising investments.
Also, be aware of taking things on prematurely. For example, don’t feel the need to sign up for a credit card terminal just because a few brides asked if you take plastic. The extra costs necessary to take that on are not worth only a few credit card sales. Instead, you may want to consider offering PayPal as an alternative payment method for your clients, which ties the expense directly to the client, rather than creating another ongoing bill. Terrica of Fabuluxe Inc explains how to do this in simple terms here.