When it comes to keeping more of the money you make, it’s important to get rid of any money leaks. Money leaks are those activities that cost your business in the form of lost revenue or paying more expense than necessary.
It’s easy to believe that in order to make more money you’ll need to get more clients. More clients can definitely increase your revenue but that doesn’t always translate to profit especially if you’re spending money at a rate faster than it’s coming in. And on the other hand, if you’re not charging for your services then adding more clients will not boost the bottom line. Which as you might imagine is a money leak.
The way to identify and get rid of money leaks is to put a process in place to review your business performance and results monthly. Below are a few common money leaks that might be impacting your business.
- Focusing on administrative tasks and not hiring a virtual assistant impacts your ability to focus on your highest money-making activities. There are services available that offer administrative solutions to business owners with limited budgets (ie: Zirtual.com and Elance.com)
- Posting, pinning, liking and tweeting for hours each day instead of connecting with your online community and finding out how you can support them. Be strategic and intentional about the time you spend on social media. Once that minute, better yet that hour is gone, it’s gone. How much is an hour of your time worth? How much money can you generate in one hour? Think about it.
- No set fee or payment schedule can create lots of frustration not to mention a large receivables balance. Everyone has a story don’t let their story determine your fees. Think of it this way – how many times have you been able to go into the grocery store and pay with your story? Why is your business different? It shouldn’t be.
It’s never too late to implement new systems and processes to eliminate money leaks and maximize your profits.