22/03/2023
Over Expenses Might be Killing Your Business.
I started a laundry business some years back,
I invested lots of money in it to make it the best, big generator, big office space, furnitures and high tech washing and drying machines.
The office was opened with 5 workers working for me.
Remember this is a new business, I don't have existing customer base.
As we launched out, I discovered how overwhelming my daily expenses are.
10 litres of fuel don't last up to 2 hours in the kind of generator I bought, the washing machine requires large amount of water to activate the sensor to start working.
My daily expenses was increasing on daily basis.
I have to pay salaries and meet other expenses,
As we are just starting, our customer base is not enough to generate enough income to offset our expenses.
After six month, I couldn't meet up, I closed the business.
As a small business owner,
Your major focus should be
➡️ getting more customers as to increase sales
➡️ Reduce expenses as much as you can.
It's very important that you start small, starting small will enable you to match your expenses with your revenue.
Starting big means big expenses when you haven't enough customers to increase sales.
Higher expenses will always keep you on the same spot, worst still kill your business.
Don't rent a shop that the business can't carry
Don't use equipment that generate high expenses for you.
Don't hire staff you can't pay
Don't create things that increases your expenses unnecessarily.
Monitor your expenses the way a doctor monitors his patient on a critical condition.
Expenses don't care if you made sales or not, they must be meet.
file this knowledge for your knowledge bank🥰
