Proposed switch
Doing business is about paying good attention to figures. It ranges from how much we make in contrast to how much we spend. Whether you like expenses or not, it remains the core part of business. Without expenses, there was never a business. Nevertheless, there is a need to always look for means to curtail cash outflow.
Here is where you will TRY to answer the big question, can what we make as realized profit sustain the company? Are there forgone alternatives or other service rendering options that would cut down the cost? How are we applying it?
Numbers don't lie, your ignorance won't transform them. I have learned that over and over again. From my early days of doing business till NOW, numbers remain the same. When you fumble with it, you just have to wait for what is about to hit you. Coming out successful in the world of business entails switching gears when we ought to. This is where the table of accountability sets in.
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Take for instance, the cost of delivering a product outside the state. Going yourself will increase the price but waybilling will cut down such cost. Inasmuch as it has it risk in which of course everything does, you can attest the margin cost difference and it is indeed worth it.
If you have been following my writing, you will recall I wrote about the current increase in the energy sector. Yes, electrical department of the country just skyrocketed the price of energy usage to consumers and this decision is even worse on prepaid meter users.
Where I am residing, it like raising the recent bill price 4x. This is in no means encouraging. I wasn't prepared for this this year and just January alone has shown us some reg flag in terms of expenses.
We are not that big a company yet, meaning there is a need to watch the figures closely. 4x is very huge a difference and from my 12 month calculation, the extra expenses on light will be enough to buy another machine for the company. So what will I rather do, close my eyes and make or perhaps look for alternatives? The latter is more advisable, I will rather save this bucks and surprise the company this year end with a fresh machine.
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So how am I working on solving this? We are switching gears from prepaid meter to an estimated one. From my research, the estimated bill is far more cheaper currently in the country. There were times it was not, adding to the fact that by then, there was no steady light and poor maintenance of local transformers. It was a big loss to businesses who will be spending money on fueling the generator to do business and still have light bills piling up. This was one of the reasons we chose to switch.
There has been a massive improvement in the light sector. I don't know for other states but ours has been worth applauding especially the heart of the city. We are talking of 20 hours light least daily. Our line of business is energy demanding and getting it at least at a more reduced rate will be worth it. We are currently working on our new estimated bill installation. Let's just hope we get it done before the week runs out. The cost of running the generator is high too so yes I will side with the switch as the best decision currently.
The risk I see here is that if the power sector should return to their former operation status of not enough light or poor maintenance then we may be doomed. I don't think that this is possible currently, they are showing the green flag of sustainable electricity in the heart of the city and I hope we can make the most of it. Hoping it just works out just as expected as we continue to look for possible ways to grow beyond some level of dependence. Of course it will take some time and till then, we will manage every bird at hand.
To conclude, let me add, business will always need an entrepreneur's attention and intervention when due. I am very happy about this move. At first, it seemed like it was never going to happen but thank God they finally complied. There is always something to resolve in business and every of it adds experience to your collection. I was really bothered throughout last week because of this. In short, work became very slow.
When it seems ALL effort is heading the expenses direction it will make business look dull. Being the fore-fronter of an establishment is not an easy task. I have been brain cracking over and over again when this lightt hike came to reality. We are spending on the current prepaid no doubt until it is finally rectified. I will do well to exercise the patients for at most it should be a week. Till then, we keep pushing.
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