But, if you don't take proper care of it, it can ruin your business

[zihadhasan010]

#3. Admin Cost
These are all the costs you have to bear to manage your business operations every day.

It's not the cost of making the product, but more of the "behind the scenes" costs that you don't see directly.



What is included in the Admin Cost? Here is the list:

Staff salaries : This includes the salaries of everyone who works with you, from those who pack the goods to those who manage the accounts. These salaries are usually fixed, so even if sales drop, you still have to pay the staff salaries.
Rent : If you have an office or shop, this rental cost is included in the Admin Cost. This rent is also fixed, meaning that even if you don't have any sales that month, you still have to pay rent.
Utilities : Electricity, water, internet bills—all of these are included in the Admin Cost. It may seem like a small amount, but if you don't monitor it, it can skyrocket.
Office equipment : From pens to laptops, all the items you use to manage your business fall under Admin Cost. Don't forget to factor in maintenance!
Software & tools : If you use software to manage accounts, CRM, or marketing tools, all of these are also counted as Admin Costs. These tools are important, but make sure you only use what you really need.
This admin cost is fixed. This means that no matter whether your sales increase or decrease significantly, you still have to pay all of this.

If you don't monitor Admin Cost well, it can become like an anchor that sinks your business.

For example, if sales drop this month but admin costs remain the same, you will feel like your profits are being sucked out.

What can you do to control Admin Cost ?

Monitor your costs every month. Don't wait until the end of the year to see. You need to be aware of how much money is going out to pay for all of this.
Optimize the use of resources. For example, if your staff can egypt phone data multitask, you may not need to hire as many people. Or, if you can save on your electricity bill by using energy-saving devices, go for it!
Negotiate the rental price or the number of tools you use. Sometimes, there are costs that can be reduced if you are good at negotiating or finding cheaper alternatives.
Create a budget for Admin Cost. Don't just spend money, plan first how much you want to spend on each category. When you have a budget, you will be more disciplined and not overspend.
In short, Admin Cost is like the cost of living for your business.

If you don't manage it well, it can affect your overall profit.

So, make sure you always monitor, optimize, and keep it under control so that your business can continue to sustain itself even if there are ups and downs in sales.