How to Evaluate Your Expenses to Increase Your Profit

Your business is trucking along. You’ve gotten to the point where you’ve finally realized that you have to invest in your business to make money.

And that’s a beautiful place to be. But the budget-conscious side of me wants to make sure you’re using your money wisely. And to do that we've got to evaluate your expenses. 

So let’s hop into your business financials and see what’s going on.

One of the first places to look is at your subscription category.

Take a look at the expenses hitting this account every month, are you using all the things you’re paying for?

If not consider canceling what you’re not using or figuring out if there are cheaper or free alternatives.

Of course, if you’re using something, you love it, and it’s worth it, by all means, keep it.

It’s also worth looking into subscriptions you pay for a year at a time.

Analyze if you’re getting your money’s worth and if you maybe need to cancel before the next renewal.

Do you have shiny object syndrome? Are you buying course after course, software after software?

Are you getting the full value out of all these items?

I know how tempting it can be to see a new class or course pop up that sounds so fantastic, and think I’ve got to have that.

It happens to me all the time. But I do my best to only buy what I really think I need, not just what would be nice to have.

If you’re looking back through your transactions and are thinking about how you haven’t made it through half of the courses you’ve purchased it might be time to take a step back and evaluate your purchasing process.

Consider the classic pro/con list, discussing it with a spouse and researching other alternatives to learn the same thing.

Shiny object syndrome is real, but a little extra evaluation at purchase time and I know you can beat it.

At the end of the day, the most important thing is that you’re bringing in more than you’re spending.

And while yes, that’s probably not going to be the case at the very beginning of your business that has to be your ultimate goal.

Because a business that doesn’t make you money isn’t a business, it’s a hobby (and probably an expensive one at that).

If you’re in a place where you’re spending more than you’re bringing in start combing through your expenses and figure out where your money is actually going and how you can cut back.

And look at your sales and marketing, what can you do to bring in more money?

I want you and your business to succeed, and I know it can! Being mindful of and evaluating your expenses will get you there even quicker!