Hopefully you remembered to set your clocks back. It seems (to me anyway) during the first week or so I think I’m always going to be early for everything. I did enjoy the extra hour of sleep yesterday. This week we’ll be talking about working on cutting your expenses so you’ll be able to make more money in your tutor business. Here is the plan for this week.
1. Monday – Overview
2. Tuesday – Election Day
3. Weds. – Things you don’t want to cut back on
4. Thursday – Advertising
5. Friday – What we learned
Another way of increasing profits for your business is to decrease expenses. This goes without saying.
We’ll be talking next week about some ways you can decrease your expenses.
There are some things you don’t want to cut back on.
You will also want to make sure you’re advertising smart. If you aren’t keeping track of your advertising then you’re wasting your money. We’ll talk about some smart ways to do this.
We’ll give you some ideas on how to cut costs on some of your fixed expenses.
You’ll want to make sure you check out the spreadsheets you made previously.
Here are some examples of fixed / variable expenses.
Fixed and variable expenses are the two main parts of any businesses total overhead expense. Fixed costs are those that do not fluctuate with changes in production activity level or sales volume, such as rent, insurance, dues and subscriptions, equipment leases, payments on loans, depreciation, employee salaries (like a secretary), and advertising. Variable costs are those that respond directly and proportionately to changes in activity level or volume, hourly wages and commissions, utilities, office supplies, and tutor supplies.
Although fixed costs do not vary with how many students you’re tutoring, they may change over time. As a result, fixed costs are sometimes called period costs. Some fixed costs are incurred at the discretion of a company’s management, such as advertising and promotional expense, while others are not. It is important to remember that all non-discretionary fixed costs will be incurred even if the number of students you’re tutoring falls to zero.