Secrets of a Virtual Boss: The Sneaky Side of Business Expenses—Unmasking the Hidden Costs

What has a nightclub and a cabaret bar got to do with this? Well, today I want to share a story about the sneaky side of business expenses—those hidden, seemingly harmless costs that can quietly drain your bottom line.

Years ago, before I founded VirtualStaff.ph, I owned a nightclub in Newcastle upon Tyne, in the north of England. It wasn’t a startup—I’d actually bought the business as a going concern. From day one, I noticed that a lot of little costs were adding up. Some of them made sense, but others? Let’s just say they were ripe for a Javier Milei chainsaw-style cut.

Let me give you a couple of examples.

The Great Window Cleaning Debate

First up: window cleaning. Now, I know what you’re thinking—this guy is about to penny-pinch on something trivial. But hear me out.

The nightclub only made its money at night. We had zero daytime business, so having every single window cleaned every week was, frankly, overkill. Our building had four stories, and the top floor was where my office, CCTV room, and cash-counting area (fondly referred to as "the money room") were located. Great memories in that room, by the way.

Anyway, the weekly window cleaning bill came to around ￡40 or ￡50. It wasn’t exactly breaking the bank, but over a year? That was hundreds of pounds. I renegotiated with the cleaner to switch to every two weeks and told him to skip the tiny third and fourth-floor windows altogether. Boom—instant savings.

D-List Celebrities and Drag DJ Magic

Now let’s talk about entertainment. The nightclub had a long-standing tradition of hiring cabaret acts every couple of Thursdays. These were usually D-list UK celebrities, like Lorraine Crosby—you know, the woman who sang with Meatloaf on “I’d Do Anything for Love.”

The manager swore these acts were money-spinners, so I humored him for a few weeks while quietly crunching the numbers. What did I find? Hiring these acts cost us ￡700 to ￡900 a pop, but the turnover on those nights only increased marginally—maybe a couple of hundred pounds at best.

Meanwhile, our regular drag DJ, who was a crowd favorite, charged just ￡120. They brought in nearly the same crowd and kept the energy alive without the unnecessary expense. Needless to say, the cabaret acts got the chop.

How This Applies to Your Business

Now, I know most of you don’t run nightclubs, but the principle is the same in any business. Hidden costs sneak up on you everywhere, from unnecessary subscriptions to inefficient processes.

Software subscriptions are a big one. Software is amazing—but it’s easy to go overboard. You add one tool here, another one there, and before you know it, you’re paying for half a dozen marketing tools that overlap in functionality.

Or take things like office perks, team events, or even overstaffing in certain areas. When your business is expanding, it’s easy to push these costs under the rug and think, We’ll make it up later. But every pound (or dollar, or peso) you save today adds to your bottom line.

Actionable Tips to Unmask Hidden Costs

1. Audit Regularly: Go through your expenses line by line every quarter. Look for subscriptions, tools, or services you don’t fully utilize.
2. Question the Status Quo: Don’t assume that just because something has always been done a certain way, it’s still the best way.
3. Negotiate: Just like I did with the window cleaner, there’s almost always room to renegotiate contracts or find more cost-effective options.
4. Analyze ROI: Before spending big on any initiative—be it marketing, hiring, or entertainment—make sure you have a way to measure its return on investment.

Remember, cutting unnecessary costs isn’t about being cheap. It’s about being smart. The money you save can be reinvested into what really drives growth—whether that’s hiring better talent, scaling your marketing, or improving your product.

So, take a moment this week to unmask the hidden costs in your business. Your bottom line will thank you.

Until next time, Michael

P.S. If you’re ready to build a smarter, leaner team, check out VirtualStaff.ph. It’s the best way to hire top affordable overseas talent and maximize your business’s potential