Now these may all seem logical but I was too busy processing work to take the time to review my operating expenses to come up with cost reductions. The greatest cost saving came from reviewing my telephone and Internet expenses. We were spending approximately $3000 per month. By changing my telephone carrier and renegotiating my Internet plan with my Internet service provider, the monthly bill dropped by $2000.
Now that is an amazing saving, all done with a few telephone calls. This process cut my monthly operating expenses from $30 000 to $23 000 per month. A huge change that added $84000 to the annual bottom line. An impressive saving by any standard and all accomplished in a matter of days rather than months. Of course, the tough pill to swallow was that I had probably wasted hundreds of thousands of dollars in the previous few years by not paying enough attention to this end of the business, but never again.
I repeat this exercise every six months, not with the intention of cutting costs by 20 per cent but just to make sure money is not slipping through the cracks because no one is paying attention to the details.