And welcome to 2021! I hope you had a lovely festive break and enjoyed some time with family and friends.
As we roll into 2021, this got me thinking. I thought I would share 9 tips to help you kickstart the new year and reduce money leakage within your business.
But, before we start, what is money leakage?
Money leakage occurs when we have money leaving our bank account for things that we do not really need. Things that we do not need include subscriptions we are not using, memberships we are not accessing, fees that we can avoid paying, and surcharges and commissions that we can get at better rates.
By reducing our money leakage, we ultimately end up with more money in our bank account, a better-looking profit and loss statement, and more money to leverage off to grow and expand your business.
Here are 9 tips to help reduce money leakage in 2021:
TIP 1- Audit all your subscriptions- subscriptions can be for software, apps, and or support services. Often these are paid monthly or annually, so be sure to have a good look. Check your app subscriptions as these can be difficult to see and hard to turn off.
TIP 2- Compare EFTPOS transfer fees- EFTPOS transfer fees are competitive and there are now many providers in the market. Look at what others have to offer and compare. Some providers are Stripe, Square, PayPal, and of course your big banks.
TIP 3- Web hosting fees- Investigate this one! Web hosting fees range from as little as $90 per year to far more. Why pay extra fees to have your website hosted when you can have it done for a lesser cost?
TIP 4- Review your Return On Ad Spend- commonly known as your ROAS, this is important. Review what your marketing dollar is returning and if it is not great or you cannot work it out, find a marketing company that can assist and offers transparency around this.
TIP 5- Your mobile phone plan- this can be a killer! Often, we choose a provider and stick to the same plan for years. Currently, there are great deals out there, and some start as low as $10 per month.
TIP 6- Flowers or plants? As much as we all love flowers, that weekly office subscription can add up. Have you thought of an indoor plant as opposed to weekly fresh flowers?
TIP 7- Check the number of licenses you need- software programs often bill you based on the number of licenses you need for your team. If your team has shrunk or you are using a different program you could reduce the cost or wipe it out completely.
TIP 8- Be sure your money is working for you- If you have cash in the bank, look at the interest rate you are receiving on that money. Although right now we are not seeing great returns, it’s good discipline to keep an eye on this.
TIP 9- Negotiate your lease! If you are moving forward with a new lease, negotiate. Whether that be for your office space, computers, or other items, be sure to negotiate.
And there you have it!
9 tips to help reduce money leakage in your business and kick you off to a great 2021.
As always, be in touch if you need any assistance with your lending needs,