How Can I Lower my Business Overhead?

In running a small and medium businesses, the ability to sustain carry on costs for business, overhead, can be challenging. Many small businesses I worked and saved often times are inthe brink of bankrupt because of this. Some of them made mistakes due to overcommitted in spending money on franchises, equipments, systems as well as people. Continuous mistakes that happen with this is usually because the business owners forgot to put its attention in bringing qualified leads to give them new businesses, so that when they open their business, they realize they have no customers to justify their initial investments and their ongoing overhead.

So again the question is: how do I lower my business overheads or how do I lower my debt? The answer to this, what I usually did is to set up a Break Even Plan. With Break Even Plan, clients can start to budget their expenses and relate that to their marketing plan to cover their ongoing costs and depriciation. What are the steps in creating this? The steps are:

• Start to develop a Break Even Calculator, within this break even calculator, you can fill them in 2 ways: if you already have an existing business, you can start filling your generic profit and loss statements and from here you can start filling your fixed costs breakdown . From here, we have ways for you to know how much sales you need to generate to cover the expenses. Futhermore, marketing wise, we can also help you set how to many leads at minimum you required to get so that with your existing sales closing rate and its average sales amount per customer, you will know definately how much minimum work that needs to be done and generated to cover your fixed costs.
• By looking back at your past profit and loss and cash flow statements, we will start breaking down the components that are making these 2 statements. By using universal rule like Parretto rule (80/20), we will work backword on figuring where and how did you drive your sales and incurring debt and expenses? How does this process relates to your current cash flow and how to improve your cash flow so that you can lower your debt and start to work sustainability in your business.
• We will also look at your balance sheet in relation to your profit and loss and cash flow statements, we will look at structures of your assets, liabilities and your net worth, what is the real portrait on your finance and how can we improve your picture? What are the components of the balance sheet that needs to be restructure, and how does this relates to your profit and loss statements and your cash flow. All of these will relate to your ability to compete in the industry and will give you enough reasons to resturcture your whole business for growth.

There you have it, the overview on what we are going to work on to lower your business overheads and paying back your debt/lower your debt. All these process are coordinated with each other with one goal to create sustainable growth within your business. If you would like to know more on how to do this, please contact us at www.kingdombizcoach.com and ger yout free Complimentary Coaching Session valued at $250.