Featured Coaching Excerpt - Notes & Transcript, Part 1
Action Step: Revisit your expenses every year to make sure you are aware of your costs.
Lesson Nugget: Make sure you do the research of the vendors that support your business.
Ask Yourself: What changes do I need to make in my business to increase profits?
Lesson Nugget: Expense reduction is the process used by companies to reduce their costs and increase profits.
[MUSIC PLAYING] netflix for capital, start a business
-OK, so if you're watching this and you want to start a business, as an action step, I encourage you to look at your business and ask yourself, are you being as profitable as you can be? And if you're not, maybe what are some tough decisions you need to make? You need to ask yourself, what changes do I need to make in my business to increase the profitability? And I think that anybody can do that, whether you're looking to sell your business or not. Everyone needs to make those type of decisions.
-Absolutely. And the other thing that I would say is our expenses are something that we should revisit every single year. I think as a small business owner we're chief cook, we're bottle washer, we're everyone at all times. And because of that, some of those kind of more mundane tasks or the things that don't seem as fun or non-sexy innovations get left behind.
So one thing that I certainly would consider is when we first go into business, we set up our merchant account, we find our accountant, we figure out which CRM tool we're going to use to manage customer relations. But we don't often go back and revisit, are these the right tools, are we're getting the right pricing, is it negotiable? And they often are. So what a lot of times we'll see is people rush to go into business and they don't do as much research around the vendors that support them in their business, but they never go back and revisit those either.
-Having an annual review is a healthy idea.
-Absolutely. And there's even companies out there that will do those reviews for you and charge you nothing and all they expect is a small piece of the savings that they get you.
-Really. If I was going to try to find that kind of company would I just Google companies that--
-Expense reduction, that's what you would look up, expense reduction analysts or expense reduction companies.
-That right there might be worth the price of admission. That's a good one. So these companies will go do all the work for you and let's say they save you $500,000 a year they'll just take a percentage of the $500,000 they save you?
-That's awesome. That's awesome. Well, I have one final question. It's a little bit controversial. I know that you're a great American and a very solid basketball player, is my understanding. So I have to ask you this. We're here in Seattle where the team obviously has moved to Oklahoma City, and we're sorry about that.
-But who was the best Seattle SuperSonic of all time in your mind?
-All time? Top names-- Jack Sikma, Freddie Brown, and Gary Payton come to mind. I'm going to go with GaryPayton.
-Gary Payton, "The Glove," all right. Hey, thank you, my friend. I appreciate your time.