Unlock Business Savings: Expert Tips to Cut Costs and Boost Profitability
Running a successful business means keeping a close eye on your finances, but it’s not always easy to spot hidden costs or inefficiencies. That’s where Erika Giuggio, an expert in cost reduction from Schooley Mitchell, steps in. In a recent episode of the Workergenix Mastermind Podcast, Erika shared insights on cutting expenses, identifying overlooked savings, and creating a streamlined business. Let’s dive into the key takeaways and actionable strategies she discussed.
The Importance of Cost Optimization
Erika highlights a common issue: business owners often act as operators rather than CEOs, bogged down by day-to-day tasks and unable to see the big picture. This operational overload not only hinders growth but can also mask inefficiencies in spending. By focusing on cost optimization, businesses can free up resources to reinvest in growth, innovation, or critical areas like marketing and talent acquisition.
The Three-Step Approach to Cost Reduction
Erika’s process is designed to be straightforward and effective:
- Discovery Call: Understand the nature of the business, its current expenses, and challenges.
- Analysis and Value Report: Analyze expenses and provide a detailed report highlighting potential savings.
- Decision Time: Business owners decide whether to implement the recommended changes, with no obligation.
This hands-off approach mirrors the work of an accountant: you provide the data, and the experts handle the rest.
Hidden Fees: What Vendors Don’t Tell You
A recurring theme in Erika’s advice is the presence of hidden fees in everyday expenses. Some examples include:
- Merchant Services: Look for unnecessary global fees if your business operates domestically.
- Telecom Bills: Evaluate if all services are necessary or if costs can be reduced with VoIP or other alternatives.
- Waste Management: Be aware of added fees over time and explore renegotiation opportunities.
- Shipping Costs: Understand logistics, tariffs, and potential refunds for delayed deliveries.
Erika’s expertise lies in uncovering these often-overlooked areas, saving clients significant sums.
The Role of Delegation
One of the most critical steps for business owners is letting go of tasks. Erika shared her personal journey of transitioning from a hands-on approach to leveraging virtual assistants (VAs) and specialists. She emphasized the importance of:
- Creating Clear Processes: Provide detailed instructions and expectations upfront.
- Investing in Expertise: Hire professionals who can deliver quality work, freeing you to focus on strategic goals.
- I Do, We Do, You Do Framework: Start by doing tasks yourself, transition to collaboration, and finally delegate fully.
Delegation isn’t just about saving time—it’s about adding value to your business.
Strategies for Times of Crisis
Cost reduction becomes even more critical during challenging times. Erika explained how businesses in crisis can benefit from immediate savings in categories like SaaS subscriptions, shipping, and waste management. These savings can provide much-needed breathing room, allowing businesses to stay afloat, reinvest, or support their teams.
Key Takeaways for Business Owners
- Understand Your Expenses: Treat every bill like your phone bill. Know what each line item means and challenge unnecessary fees.
- Invest Wisely: View delegation and outsourcing as investments, not just expenses.
- Embrace Cost Optimization: Regularly evaluate your vendor contracts and expenses to uncover hidden savings.
- Plan for Growth: Use savings to fund strategic initiatives like marketing or hiring, accelerating your business’s trajectory.
Start Saving Today
Erika’s expertise shows that optimizing costs isn’t just about cutting back—it’s about working smarter. By identifying hidden savings and creating efficient processes, businesses can unlock resources to fuel their growth.
Ready to take the first step? Schedule a free expense audit with Erika Giuggio and her team at Schooley Mitchell. It’s time to plug the holes in your financial boat and set sail toward greater profitability. Check out their website for resources and more!
Listen to the full episode of the Workergenix Mastermind Podcast where Erica dives even deeper into actionable strategies for business cost reduction.
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Harley Green
Hey everybody, welcome to the Workergenix Mastermind podcast. Today we have a very special guest who is an expert in reducing business costs so that you can be more profitable—meaning taking home more money. Erica is with Schooley Mitchell. She has years of experience working in marketing as an entrepreneur and even had a patent by age 21. We’re really excited to hear what she has to say and learn some valuable tips on reducing expenses today. Erica, welcome.
Erika Giuggio
Harley, thank you so much for having me.
Harley Green
Tell me about this patent you had when you were 21. I’m excited to hear about that.
Erika Giuggio
When I was 21, that was my first step into business. I read a book about solving everyday problems and filing patents. It was in the cosmetics industry, and I created a brush that detaches. If you’ve ever worked with paintbrushes, you know the glue often becomes unattached when exposed to water.
Harley Green
Very cool. What was that process like? Did you file it yourself or work with an attorney?
Erika Giuggio
It was an interesting process because I didn’t know anything at the time. I went to a firm in Toronto that works with patent offices across Canada and the U.S. The process involved a lot of back and forth and changes. It took about five years to get approval in the U.S., and I’m still waiting for approval in Canada.
Harley Green
Wow, that’s a long haul! Tell us more about your journey from being a patent inventor to becoming a business cost reduction expert.
Erika Giuggio
It’s been quite a journey. After creating the patent, I realized I needed more help than I let on. That’s when I went back to school to get my marketing degree. While the patent process was still ongoing, I started a marketing agency. This was during the peak of the pandemic, and since jobs were scarce, I decided to create one for myself.
In my marketing work, I noticed many business owners were like boats with multiple holes—they had financial leaks they didn’t even realize. I realized that helping businesses reduce costs could give them the resources to invest in other areas. I was introduced to the cost reduction space, and it was a lightbulb moment. Helping businesses save money can keep them afloat, reinvest in growth, or even prevent bankruptcy.
Harley Green
That’s powerful. What are some of the first steps you take when working with a business to identify those financial “leaks”?
Erika Giuggio
The first question I ask is, “Where do you want to be in five or ten years?” That usually turns into a therapy session where the business owner spills everything. What I often find is that they’re acting more like operators than CEOs—they’re doing everything themselves.
From there, I analyze their bills to find savings within their current vendors. If I can’t find savings there, I look into our network of 3,700 vendors across the U.S. and Canada. We find savings 80% of the time. For the other 20%, they’re already doing a great job, which is also a win.
Harley Green
Do you ever find situations where eliminating expenses is better than switching vendors?
Erika Giuggio
I don’t like to eliminate things without understanding their purpose. For example, I worked with a construction company that had four different phone lines for each project. Instead of eliminating, I suggested consolidating to one phone system with multiple lines or using walkie-talkies. It’s more about optimizing the process and ensuring everything and everyone adds value.
Harley Green
How do you help businesses stay on track after identifying areas to cut costs?
Erika Giuggio
I tell them to treat their bills like their cell phone bill—understand every line item. If something doesn’t make sense, ask your vendor for clarification. For example, in merchant services, you might see a global fee. If you only do business locally, that’s a fee you can eliminate. Similarly, telecom costs can often be reduced by switching to VoIP or negotiating better plans.
Harley Green
You mentioned strategies for times of crisis. Can you share an example of how you help businesses during those moments?
Erika Giuggio
In times of crisis or even during mergers or acquisitions, we can step in and analyze expenses across categories like telecom, shipping, SaaS, waste management, and more. For example, we might identify $60,000 in savings across multiple areas. That money can be reinvested into the business or used to weather the crisis.
Harley Green
When should business owners start delegating tasks, and what roles do you often recommend outsourcing first?
Erika Giuggio
Marketing is a big one. When I started, I did everything myself, including dedicating Saturdays to marketing. But as you grow, you need to let go. Once you’re earning $5,000–$10,000 per month, it’s time to evaluate what tasks you can delegate. Think about your opportunity cost—if you make $300 an hour, it’s better to delegate tasks like marketing to someone who specializes in it.
Harley Green
How do you advise business owners to transition when they start delegating tasks?
Erika Giuggio
Set up a process and system for the person you’re delegating to. Don’t just hand them a task without clear instructions. Show them how you do it, let them ask questions, and give them the tools to thrive. You might find they improve your process, but only if you’ve set them up for success.
Harley Green
You mentioned hidden fees in waste management and shipping. Can you elaborate on how businesses can save in these areas?
Erika Giuggio
In shipping, vendors might not tell you about warehousing fees, customs, or tariffs. For waste management, companies often add hidden fees over time. Understanding contracts and negotiating terms is crucial. For merchant services, you can often negotiate interchange fees.
Harley Green
What’s the process for someone who wants to work with you to reduce their expenses?
Erika Giuggio
It’s simple—three steps. First, we have a discovery call to understand your business and expenses. Then, you sign a letter of authorization, allowing us to analyze your bills. In four to six weeks, we present a value report outlining potential savings. You decide whether to implement the changes.
Harley Green
Everyone, if you’d like a free expense audit from Erica, I encourage you to connect with her. We’ll have the link in the video description below. Gather your expenses and let Erica take a look—it’s worth your time. Thank you so much for sharing these tips today, Erica.
Erika Giuggio
Thank you for having me, Harley.