A proven, affordable solution for reducing your operating costs

Woman checks sales receipt after shopping. Returning goods, calculating costs, planning own budget

Operating costs are a necessary part of any business. However, with careful planning and management, they can be reduced significantly. The more you can reduce your expenses, the more you can allocate towards growth or other important areas of your business. As a business owner, it is important to understand how to calculate and find your operating expenses, as well as how to reduce them where possible.

Here are the questions we will be answering:

1. What is an operating expense?

2. How to calculate your operating expenses?

3. How to reduce your operating expenses?

What is an Operating expense?

Operating expenses are an important part of any business and can have a big impact on the bottom line. These expenses are any costs that are incurred in running your business and can include everything from salaries and wages to marketing and advertising.

How to Calculate Your Operating Expenses?

There are a number of ways to calculate your operating expenses. The most common way is to divide your total revenue by your total operating expenses. This gives you a good idea of how much your business spends on operating costs each month. Another way to calculate your operating expenses is to use a software program that can track all of your expenses and give you a report at the end of the month. This can be a great way to keep track of where your money is going and see where you can cut costs. Finally, you can always talk to an accountant or operations consultant to get help in calculating your operating expenses. They will be able to give you specific advice on how to save money and improve your bottom line.

How to Reduce Your Operating Expenses?

Track and Reduce Fees

There are fees for just about everything when you run a business, and they can really eat into your profits if you’re not careful. Credit card processing fees, invoice service fees, shipping fees – they all add up. So where can you reduce fees? Are you paying more than the market rate for any of your services? It’s always a good idea to compare prices and make sure you’re not paying more than you have to. Every little bit counts when it comes to your bottom line, so it’s important to keep an eye on your expenses and make sure you’re not paying more than necessary. By comparison shopping and being mindful of the fees you’re paying, you can help reduce costs and keep more of your hard-earned money.


One way to reduce operating expenses is to use an affordable solution like outsourcing. When you outsource certain tasks or functions, you can save money on labor costs while still getting high-quality work. For example, many businesses outsource their accounting or bookkeeping needs. This can be a great way to reduce your overhead costs without sacrificing quality or service.

Audit Service Investments

It’s important to understand the difference between having an “essential” service for your business versus a “nice to have” service – this way, if you ever need to cut costs, you can do so without making emotional decisions. An essential service is something that keeps your business up and running, whereas a nice to have service is something that makes life easier. To figure out what’s what, ask yourself: if we didn’t have this service, could we still operate? If the answer is no, then it’s essential. If the answer is yes, then it’s nice to have. Keep in mind that what’s essential for one business may not be essential for another – it all depends on the individual business and what they do.


In order to reduce your operating costs, it is important to understand how they are calculated and to find ways to reduce them where possible. At The True North Consulting, we work with you to understand your business goals and develop a plan to help you achieve them. Our clients experience a net profit improvement of 25% through a combination of expense reduction, improved profits, and a more efficient and productive team execution. If you are ready to review and reduce your operating costs, consider our business consulting services today.

Helping You Make Your Business Independent Of You Rather Than Dependent On You