Put simply, if you want to increase your profits, you can do two things: create more revenue without the same increase in expenses OR start cutting out the expenses that aren’t helping you make money.
Look over your business expenses so far this year and categorize them into:
- Those that are needed in order to generate revenue.
- Those that aren’t directly related to creating sales, but necessary.
- Those that don’t fit into #1 or #2.
Next, review what you have put in #3 and see if you have any expenses that you can cut. Even if you don’t find much, every little bit helps. With every elimination of expenses, your profit increases!