I can’t even tell you how many times Steven and I have had a sum of cash, and then before we know it we have nothing left. The only problem is the phrase “I don’t even know where it went,” comes out of our mouths. We have become so aware of this that this issue has drastically reduced, but it’s still not a fun thing to hear and say.
As small business owners, how often is that same statement true? I know in my business I have a lot of auto-payments, so I don’t even think about where some of my money is going. When I was preparing all of my expenses this year for tax season, I took a hard look at my expenses to figure out exactly where my money was going.
I was spending too much! Some things are critical expenses, such as client gifts, my website, my accountant and so on. But others? They weren’t so great to spend money on.
This year I decided to look at what I was spending my money on with marketing, and look at what was working and what was not working. By doing this, I was able to save over $800 in my marketing alone for this coming year because I was investing in things that hadn’t actually helped my business. What a relief that was! Now I can take that money and re-allocate it to something else, like attending a workshop, investing in a new lens, or putting it where my marketing is really soaring.
So, this is short and sweet but I want to encourage small business owners to really analyze their expenses to figure out where their money is going and if the money is actually working for them. If it’s going to something that you isn’t helping your business grow, change it so that you are investing your money in your growth 🙂
I wish I had started to do this from the very beginning of my business so that I could’ve been smarter with my money and putting it to work for me!