This is the keeping the lights on exercise.
What I want you to do is gather your bank statements (in printed form ideally) from the last 12 months including any credit cards your business might have…and sit down with a red pen and go line by line and asking yourself is this item 100% necessary to keep the lights on in my business?
If you’re thinking the money from this would be nice to have, then you’ll need to have a think about how necessary this item is, this could be a service, a programme, a subscription etc. If you’re not sure, ask a team member or someone who may deal with particular aspects of your business as they may be able to assit you further.
If you’re looking at something and are thinking ‘No I don’t need this’ you’ve spotted a money leak. Give it a circle in a red pen and plug that money leak, cancel that subscription, cut that service and save yourself some money!
It’s important to do this annually as well as reviewing them quarterly to ensure you catch each subscription or recurring expenditure. Then I highly recommend you add this to your calendar so you can perform routine checkups.
Just the other day when taking on a new employee, I managed to save myself more than £200 per month! This is a worth while exercise to saving yourself some hard earned cash.
Thanks ever so much for taking the time to read my post I truly hope you’ve found it useful and insightful. If you have any questions feel free to contact us!
I am Annette Ferguson, CEO of Annette & Co. Chartered Accountant, Profit First Professional and creator of the Business Wealth Engine. We’re also SUPER social so don’t forget to follow. Here’s to your success!
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