Identify and Stop Money Leaks in Your Business
As fall progresses, it's the perfect time to identify money leaks and plan for the upcoming business year. These small leaks might go unnoticed, but they can accumulate over time.
Imagine a bucket with tiny holes—while you might not see the water dripping out, collecting it in another bucket would reveal just how quickly it adds up. Our goal is to stop or reduce these leaks, allowing you to use your money for things you enjoy, like dining out, vacations, or even that new car you've been eyeing.
How to Find Money Leaks
Start by reviewing your financials. Consistent awareness of your finances is key to managing your business effectively. If you work with us, we provide this information and conduct a Money Leak check twice a year.
As you examine your financials, focus on automatic charges to your credit card. Consider the following:
- What are you paying for, and how much does it cost?
- Are you using all the tools or software you're subscribed to, or have you switched to new ones that serve the same purpose?
- Check your bank statements for recurring expenses, like internet or cell phone plans.
Eliminating Money Leaks
Once you've identified the leaks, it's time to determine which ones you can stop:
- Can one tool perform multiple functions, reducing the need for others?
- Are there newer, more cost-effective tools available?
- Do you need the premium version of an app, or will the free version suffice?
- Are all your current subscriptions necessary?
- Have your business needs changed, eliminating the need for certain services?
- Explore new plans with your internet or cell phone provider to ensure you're on the best plan for your needs.
For monthly subscriptions, cancel auto-renewals for tools you no longer need. For annual subscriptions, set reminders to cancel before they renew.
Preventing Future Money Leaks
After patching up current leaks, focus on preventing future ones:
- Set quarterly reminders to review your tool usage as part of your Stop Money Leaking plan.
Ask yourself:
- Am I still using this tool?
- Are there better options available?
- Can this tool replace another?
- Is this the right tool for my needs?
- Am I on the right plan for continued services?
Remember to track these expenses, as they may be tax-deductible if you're actively using the services.
Too Busy to Handle This?
We understand that it can be challenging to step away from income-generating tasks. However, consider this: by canceling a few subscriptions and securing a better cell phone plan, you could save $500 annually in just an hour!
You have two options: delegate this task to your assistant, who can research and verify your software and app usage, or take a conscious approach to review your expenses. Either way, you could be effectively generating income by saving money.
Need assistance identifying your money leaks? Contact us, and we'll be happy to guide you in the right direction!
