Take a Hard Look at Your Expenses to Increase Cash Flow

[Max Emory]

For some, the easiest way to do this is to go through the past 3 months of bank and credit card statements and mark each expense with a letter or highlight them. I got this method from the Profit First system. (They may do it slightly differently but it's the same concept.)

Distinguish between..
---Profitable: the expense generates more revenue for your business than what it cost
---Necessary: the expense is necessary for your business to run but doesn't directly generate more revenue than what it cost
---Unnecessary: the expense does not generate more revenue for your business than what it cost and isn't necessary to run your business

Whatever turns up unnecessary, get rid of that expense as quickly as possible!

Finally, take a look at the necessary and profitable expenses and brainstorm how to lower those expenses while still getting the same or a better result from them.

Has anyone done this? I can say I have done this and it is POWERFUL.

Hope this helps!

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Real Estate Investor | USMC Veteran