As I was doing a little homework on this subject, it occurred to me that I may be a slow learner when it comes to money. The premise that I have mostly followed is that making money is the end all for small business owners. If you make the money, you can buy more inventory, afford another employee, make business investments, increase marketing spend, etc.

But, what if you committed to save any portion of what you save as a percentage of the money earned? Does that mean you can’t afford the items listed above? To illustrate, let’s assume that you have a business income/expense breakeven point. Meaning, any income over the breakeven point that covers all expenses is basically gravy for the business (or the business owner). 

 

So, let’s assume that you eliminate one expense that does not add to the bottom line. Is that savings now considered income? We think so!

In this context, saving money is the same as making money. If you eliminate one non-performing expense, you either a) just lowered your breakeven point or b) just free’d up money to invest in your business.

The argument that I’m trying to make is that the money you save on business expenses provides incredible leverage. Your credit card processing expenses can be virtually eliminated with our preferred cash discount program. Start adding to your business vs taking away from your business.

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