THE RIGHT TIME

When is the right time for an additional expense? The answer is, generally, never. But what if that additional expense also brings added value? Realistically, expenses are there for a very serious reason, and that is to generate revenue, and consequently money, which, as it turned out in the COVID era, is king at the end of the day.

Let's dive deeper into the nature of expenses, why we need them and how to deal with price increases, new taxes and how to turn the tide in our favor. To really understand why we need an expense and how we can actually get added value, let's go through an example.

A company that has online sales has one expense that is inevitable. Shipping - no matter how you look at it, it is an expense, necessary for business, but still an expense. If there was no shipping, there would be no revenue generated, nor money in the account. Now, finding the right balance in the whole story is for our income to be greater than our expenses. But how to achieve that? Sometimes with a simple, sometimes complicated calculation. And indeed, I have met many times that entrepreneurs make a calculation, they set up the story perfectly, they will get the money and that's how it goes. However, at the end of the year LOSS. How is this possible if we were getting "cash" and everything was wonderful and wonderful. It happened that they did not look at when the money comes in, when it goes out, they did not allocate all costs, and they did not look at other factors that affect the success of the business, such as when to enter the VAT system, how to prepare their customers for price increases, how to fight inflation, new costs in the form of new employees. And slowly, slowly, the advantage gained at the beginning of the business melts away.

The right approach to entrepreneurship is to look at the whole picture. You are really an expert in your field, you have a good idea, maybe you are the first on the market, maybe you have covered that black hole in the market, that niche that nobody thought of. But you are still in the red. Knowing your business in depth, knowing how each of your transactions, whether it's a sale, purchasing inventory, buying a car or simply increasing your employees' salaries, is the key to survival, "smart growth" and a successful long-term story.

Maybe it's the right time to contact us and turn that extra expense into generating new momentum and growth for your story.

Marin Horvatić • 1/27/2025