Are You Wasting 20% of Your Business Budget? with Duane Deason | CFC 281

Prioritize profit over just sales: Don't solely focus on top-line revenue; understand your net profit and make sure your growth is sustainable and profitable.

Cultivate financial literacy: Educate your employees on the financial impact of their decisions and reward them for cost-saving initiatives to foster a cost-conscious culture.

Implement a cost management center: Designate individuals or a team, even part-time, to actively monitor and manage company expenses, ensuring cost control remains a priority.

Scrutinize disbursements, not just P&Ls: Go beyond profit and loss statements to examine actual cash outflow in your disbursements journal to identify where money is truly being spent.

Question utilization across all resources: Regularly audit the use of all company assets, from cloud services to employee headcount, to ensure they are being utilized efficiently.

Establish clear signature authority: Limit the number of individuals authorized to sign contracts or obligate company funds to maintain control over expenditures.

Set spending rules: For yourself and your team, create clear guidelines and a process for approving purchases to prevent impulsive or unnecessary spending.