Cutting Expenses

What one piece of advice would I give to a brand new campground owner who perhaps has never owned a business before? Or what piece of advice would I give to a campground owner who has been in the business for a long time?

That one thing is the same and let’s discuss it. Many entrepreneurs go into business, and one of the first things they do, whenever anything is troubling with cash flow, is to attempt to cut expenses. Cutting expenses is something you ought to pay attention to once in a while. However, it shouldn’t be the primary focus of your energies. If your business is having cash flow issues, focus on raising revenue. What can you do to get more sales? What can you do to bring more revenue into the door? The answer to raising revenue will solve any of the problems that any business ever has with cutting expenses.

And it’s multiple exponential growth factors. If you grow your revenue by a thousand dollars, that’s equivalent to cutting expenses by a hundred dollars. And it’s a much easier job and will multiply throughout future uses. Yes, I recommend you take a look and not overspend on certain categories, especially things like utilities or insurance. Those things ought to be looked at on a periodic basis, but they will not save your business at the end of the day; revenue will. Revenue cures all ails in a business.

So focus on what you can do to bring more customers to your park, and have a better experience for your park. Offer more add-on amenities and other sources of revenue that you can achieve based on your current marketing efforts. If you’re not doing marketing, you should be. So contact prior guests who loved your park and ask them to come back. Also, marketing does not mean a discount. It means asking people to remember you and put you at the top of their list. So focus your efforts on growing revenue rather than cutting expenses because cutting expenses could cut you all the way out of business.

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Donna Bordeaux, CPA with Campground Accounting

What happens when you send two CPAs out into the relaxing outdoors to camp? You get  Donna and Chad have over 50 years of combined experience as entrepreneurial CPAs.  They’ve owned businesses and helped business owners exceed their wildest dreams. They camp and travel across the country every chance they get, so it’s just a natural fit that they focus their CPA skills on helping campground owners throughout the USA grow their businesses and minimize the impact of taxes.  They understand the key performance indicators and specialized issues that face RV park owners every day.

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