From the blog of Quyen Lovrich on March 30th 2011
My dream is to own a small business someday.
Marley Majcher aka “The Party Goddess” warns I could end up making $5 an hour in the fabulous field of entrepreneurship. *RECORD SCRATCH”. Excuse me, how much?!?!
In this workshop, The Party Goddess highlighted tips from her book which helps business owners pinpoint areas that are draining their profits.
There are obvious expenses that you would hope most business owners are aware of: cost of goods and overhead. The Party Goddess touched on the hidden expenses of running a business and completing projects for clients. She did a quick exercise to show just how fast profits could disappear and leave owners with a measly 5 bucks an hour for their time and effort.
There are three tactics that The Party Goddess says savvy biz owners can try to boost profits: 1) raise prices 2) become more efficient or 3) cut expenses. Fresh off of my last post called “Social Media Time Suck”, I was intrigued to learn tips on becoming more efficient. My homework assignment for the next week is to track my time in increments of 15 minutes (I hope I won’t be too disgusted with my use of Twitter!). I also have to go back to the last 2-3 projects that I worked. I need to figure out how much time was spent plus the expenses I racked up to complete the projects (i.e. emails, phone calls, research, gas & mileage). This will give me a true picture of how many pesos I earned.
It was a workshop filled with many helpful little nuggets and I truly enjoyed meeting The Party Goddess. She sips wine freely and speaks bluntly, my kinda lady! Excuse me while Two Buck Chuck and I crunch some numbers!
Do you own a small business? What are some of the hidden expenses eating at your profits? Do you have helpful solutions for other entrepreneurs?