As we get further into fall, it’s a great time to check for Money Leaks and re-evaluate your upcoming year in business.
We don’t always see these little leaks – but they do add up.
Picture a bucket of water with pinholes – you may not see the water slowly dripping out but if you collected the water dripping into another bucket you would see it is collecting quicker than you thought.
We want to stop or mitigate those leaks – don’t let your money leak away when you could be using it to enjoy nice meals, a holiday or perhaps towards that new car you’ve been eyeing up!
Find the Money Leaks
The first step to determining your money leaks, is to have your financials ready in front of you. Being consistently aware of your financials is crucial to staying on top of your business.
If you work with us, we always have this information ready for you. We do a Money Leak check for your clients twice a year.
- As you go through your financials, look at your numbers and break out what is automatically being charged to your credit card.
- What are you paying for and how much is this costing you?
- If you are paying for tools or software programs monthly, are you using these tools? Or have you moved to a new tool that is doing the same task for you?
- Check your bank statements for recurring costs, such as your internet provider or cell phone plan!
What Leaks can you STOP?!
The BIG piece of this is now that you’ve found your leaks it’s time to determine which leaks you can stop!
- Is one of your tools capable of doing more? Perhaps you are not using a tool to its full capacity and it can easily take on the roles of other tools you are paying for.
- Have you been using the same tool for a long time? Perhaps there are new tools out there that can do the task cheaper?!
- Maybe you signed up for the premium version of an app and really all you need is the free version?
- Do you still need all the tools/subscriptions you are signed up for?
- What about the needs of your business? Have your marketing needs changed, and you don’t need to pay for certain services anymore?
- What about other services that you use? Maybe you aren’t aware of a new plan for your internet or cell phone that can save you a lot of money! Call your cell phone or internet provider and ask about new plans – ensure you are on the plan that is right for YOU and your NEEDS!
- For monthly subscriptions, now is a great time to cancel all the autorenewals for tools you no longer need! If it is a yearly subscription, set a reminder to cancel before it is up for an autorenewal.
Preventing Future Money Leaks
Now that you’ve found some leaks you can patch up and save yourself some money, it’s time to think about how to prevent future leaks.
- Start creating quarterly reminders to check in on your usage of all the tools you are paying for. Make this part of your Stop Money Leaking plan!
- When reviewing these costs, ask yourself the following:
- Am I still using this tool?
- Are there better options available?
- Is this tool capable of taking over tasks of another tool?
- Is this the right tool or service for what my needs are?
- If I am going to keep using this service, am I on the right plan?
- Don’t forget to keep track of all these expenses, as most likely you will be able to write them off on your taxes. Remember there is only value in this if you are actually using the services!
But you’re too busy to do this! We totally get that. So are we!
It is tough to pull away from your income generating tasks to do this – but I am going to challenge you on that!
You have two options, the first is to ask your assistant to do this for you. It won’t take much time to research the software/apps you are using and double check that you are getting the most value out of your business expenses!
Your other option is to be mindful that is this is a conscious decision to look at all the little things that may be costing your business money. What if you can cancel a few subscriptions and get a better deal on your cell phone plan? This could easily add up to a savings of $500 per year and you did it in an hour!
Are you really pulling away from income generating tasks, or HELLO you just made yourself $500 in an hour!
Need help figuring out where your money leaks are? Contact us here and we will be happy to point you in the right direction!