Keeping costs down

How do I know when I am spending too much?

Watch the profitability of your business on a month by month basis. If your sales are level and your profit is falling, look closely at your expenditure - and cut costs. It might be sensible to plot both income and expenditure on a break-even graph and put this on your office wall.

If you have budgeted well, and if you achieve your sales targets without over-spending, then you will usually be okay. Watch out, though, if you sub-contract a large part of your work. In this case, you need to watch your break-even point closely as well.