Are finances for your blog a major headache?
Achieving low costs in any business is an excellent advantage for the blogger. However, it is not always easy to answer the question "how to control and reduce costs?"
Controlling costs has become as important a priority as improving the blog's revenue. For this reason, conducting an internal evaluation of expenses and understanding the operation of the processes is the best way to identify unnecessary expenses.
Then, set up an effective program that offers benefits that are sustainable for the business itself. After all, a blog is a business if you are generating an income from it.
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Are You on Top of Business Finances for Your Blog?
However, it is up to entrepreneurs to find the best strategies to reduce costs. And that reduction means getting more flexibility to take advantage of market opportunities.
Therefore, it is essential to invest and take advantage of this initiative. Reducing costs is still a big challenge, so here are some tips to help with this challenge.
Let's take a look.
1. Measure Expenses to Keep Track of Finances for Your Blog
Before making an action plan to reduce costs, it is necessary to evaluate your blog's expenses. Once the data is collected, start a detailed analysis from the most important (or the most representative) to the least relevant expenses.
This analysis will allow you to identify any "hidden" costs that positively impact your organization's results. Knowing each expense is essential to identify possible solutions.
Some of these costs may include plugins for your blog, themes for the website besides some tools to improve your social media management. Digital ads and hired SEO help may be other expenses you have to grow your blog business.
On the other hand, with this action, it will be possible to measure the main expenses and those that are unnecessary; those that do not add value to the blog business. Maybe one of your digital advertising expenses is not panning out, why continue to put money down that hole?
Remember that it is impossible to manage what cannot be measured.
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2. Make a Long, Medium, and Short Term Analysis
To assertively control expenses and reduce them, it is essential to visualize the reductions through long, medium, and short term analysis.
To do this, evaluate cost reduction alternatives within a more extended period; in this way, your blog business does not run the risk of relying only on short-term results, which will not be sustained for a long time. I do this with an excel spreadsheet.
This helps keep finances for your blog on top of mind each month.
Being able to see these in black and white helps you to better keep track of what comes in and what goes out. Keep on top of this monthly otherwise, it will be a nightmare to do on a quarterly or yearly basis.
3. Improve Your Process
Evaluating just ledger accounts or cost centers is not enough to identify potential bottlenecks and problems in your business processes.
Therefore, when you think about processes, many activities are revealed, such as rework, duplication, or processes and actions performed with little value to the company and its customers.
The problem is that many bloggers find it challenging to map and understand all the processes involved in the production of their blog, products, and services they may sell from it.
Completing this task takes time and requires the blogger to commit to evaluating what it does. It is essential to define the results or products delivered at each process's exit, its components, suppliers, and limits.
Since controlling and reducing costs are information-intensive tasks, you must pay attention to internal processes.
4. Renegotiate or Rethink Agreements
Negotiating with creditors can be a viable alternative to control and reduce costs. If you have any company that deals with sales, you will need a reliable company for deliveries and being cost-effective.
Many bloggers sell items on their blogs to make a living from it.
If you find truckloads for delivery, you can weigh up the pros and cons and make life much more comfortable. Therefore, make agreements with your suppliers and negotiate the best payment terms to be made without significant financial consequences.
Another area to take a look at is if you have anyone else working for you, full-time, part-time, or as a freelancer or influencer.
Are they saving you time to help you grow your business in other ways? That is what you need to know before you continue to keep them on your payroll. If you decide to let one go be sure to give them some notice as a courtesy.
Your Turn
How are you keeping track of your finances for your blog? Have you grown your blog into a business?
I'd love to know more in the comments below.