When running a company operational expenses can either sink your business or allow it to swim. The most common operational expenses are labor, paper costs, and advertising expenses, but with streamlining and budgeting these appropriately profit margins can increase. Bobby Scott stated, “Operating expenses are funds that are used to operate the sportswear business.” There are several operating expenses in a business, such as: labor, paper costs, and advertising.. Labor is one area to cut operating expenses, but this can cause morale killer in company. So instead of cutting the labor maximize the potential of the employees and cut the ones not operating to the highest standards. In the Journal of Management in Engineering, it is stated “one of the most important factors in the success of a professional firm is the way that individuals within the organization interact and form highly efficient teams to produce high-quality products.” A smart concept to allow growth for the employees is to offer an “open management” policy. This concept allows the associate to speak up about any problem they may encounter. Also everything is kept out in the open for the employees and at the end of the year they are rewarded with a bonus based on their contribution to the company. By using this concept there is a lower turnover rate, which in turn, lower the budget for training new employees. Today’s digital age offers another way to cut operational expenses in paper cost and advertising. By converting your purchases to an electronic format and the human resources forms also in the digital form will lower paper cost by not needing to print out receipts and online catalogs instead of paper ones allows the company to reach more customers than a catalog would have and makes the ordering process more efficient for the customer. Schulz stated, “We need to provide a vehicle that makes it just as simple if not more so, yet providing customers with more data so they can make a more informed decision." As a company they could hire a third party, like Millstar, to control all your online process for a low price. As far as advertising social networks are the most efficient way to reach todays