Are you Leaking Money?
Leaking money from your business is sad and inefficient. Sad because that money could be put to good use eleswhere in your life or business.
When was the last time you went through your outgoings with a fine tooth comb and …. If you had extra money, what would you use it for?
Is there something you have been really wanting to do in your business? Or could you spend the extra on self-care – something just for you? Or do you love to travel and want to plan another trip? It’s great to have an incentive.
Take last months bank/card statements/paypal account and let nothing go unquestioned. Your business is too important to waste money on things you don’t want or need. Be deliberate about it. It’s respectful to you and your business that you care.
It’s not about draconian chopping out. It’s about looking, choosing deliberately and deciding.
Are you Leaking Money?
Here is a list of possible money leaks that you could declutter in your business:
- Subscriptions that you no longer use with direct debits that just keep coming out
- Paying bank charges that happened because you overlooked your cash flow
- A course that didn’t work for you. Did it have a money back guarantee. Could you get your money back?
- Could you pay less for some services: telephone, banking services?
- Are you spending too much on outsourcing? Is it time for a part time or full time employee?
Is Disorganisation Creating Money Leaks?
This is not a direct cost but a crucial one to watch. When a business is not running on efficient systems then a lot of time is wasted and wasted money translates to less profits.
Are you missing important emails because your inbox is wild, for example?
Or are you missing important client opportunities because you don’t have a good CRM?
Soft Expenses – A Luxury Problem
Hard expenses refer to the basis costs of running your business but there are many extras which are just ‘nice to have.’ I’m guilty of enjoying the soft expenses a lot. Things like … online group subscriptions, courses, books.
Are these expenses eating at your profits? Decide if these expenses are something that are really benefitting you in your business or if they are a luxury that is cutting into your bottom line?
What is important to you? Choose deliberately.
Some outgoings will be obvious: things that have slipped your mind, things that you just haven`t had time to stop. Others will be trickier.
For the trickier expenses, one idea is to list every single outgoing and give it a rating between 1 and 5 where 5 means `totally indespensible` down to 1 which is `really not needed.`. This helps to put things into perspective.
Anything less than a 3 needs a good looking at and a few questions asked:
- What is the function of this in my business?
- What does having this give me?
- What would actually happen if I got rid of this expense?
Sometimes going through your list can spark inspiration. You might start using a service again or feel inspired to keep going with that course or subscription. Fantastic. That`s what clutter clearing is all about – renewed energy and purpose!
Look at alternatives
Once you have got your expenses list a bit cleaner then its time to look at alternatives. Are there cheaper versions that are just as good? Don`t compromise ease and quality for expense but just be aware that sometimes you just have not looked at alternatives for a while.
I`d love to hear how you decluttered your expenses and how and where you saved some dosh.
Do you want to create new positive, fun, easy and simple money habits? Sign up below to get it my Good Money Habits Tool.