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Lesson #1 - Stop the Bleeding

Austin Church

by Austin Church


Apr 18, 2013


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At the end of 2012, we sent out a survey to Kicktastic members, and quite a few folks said that they wanted to learn our best money making ideas and how to profitable each and every month.

The gauntlet was laid.

So let's get to the Lesson #1: Stop the bleeding.

How much money do you bleed each month in unnecessary expenditures?

Take a look at your bank account, and make a list of the name, amount, and the supposed benefit of each expenditure:

  • Software-as-a-service
  • Regular, "one-off" software products
  • Office rent/lease
  • Office equipment
  • Payroll or contractor payments
  • Domain registrations
  • Hosting
  • Licenses
  • Paid access to tools
  • Premium accounts
  • Coffee
  • Eating out
  • Books and other media
  • Training and educational resources
  • Bank fees
  • Credit card interest

Now that you've got a list in front of you, put on your Brutal Honesty hat (the one that looks like a Viking helmet).

Some expenditures—such as domain registrations and taxes (hiss!)—are unavoidable or necessary. Others are, well, superfluous. Go through your list, and subject each line item to these questions:

  •  Do I use this daily?
  •  Do I at least use this weekly?
  •  If I cancelled this service, would I lose money?
  •  If I cancelled this account, would clients complain?
  •  Does this tool make me more money either daily or weekly?
  •  Will closing my account hasten the Zombie Apocalypse?

It's so easy to treat those fatty business expenses like gym memberships: "I've already spent this much. If I cancel my membership now, then that means I've wasted all that money and I'm no better off."

Don't listen to that voice in your head. Now's the time to cut your losses. After all, if you change your mind later, you can always sign up again, and you will have saved money in the meantime.

Maybe you need to find a bank account with no monthly fees. Maybe you need to let some domains expire. Face it, you're not going to make your fortune with baconwarehouse.com. Ok, maybe that one's a bad example. Everyone loves bacon.

Saving $50 a month means earning $600 a year.

Saving $200 a month means living like a rockstar for a month in Ecuador or Thailand.

So stop the bleeding.

Tune in next week for more intensive (and holistic) strategies for staying profitable.

Categories: Business, Complete Elephant, Growing | Tags: best money making ideas


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