07: Downsize Your Economic Footprint
Welcome to the first episode of this series called BULLETPROOF YOUR BUSINESS.
Let's be real. We've been in an upmarket for the last decade where our businesses started in but the reality is, we're rapidly approaching a down market.
And in light of recent events, answering this question becomes paramount: "How can you make your business survive and thrive regardless of the business environment?"
One of them is by downsizing your economic footprint.
I share an exercise that you can do to downsize your economic footprint and get rid of unnecessary business expenses.
You'll be amazed by how this can save you hundreds or even thousands of dollars every month to further grow your business.
[3:00] How To Downsize Your Economic Footprint
- Create 3 columns in a Trello Board: Must Have, Nice To Have, and Need To Cut.
- We use that Trello board for a variety of business expenses
- Print out your credit card statement, check your subscriptions and ask yourself: "Is it a Must Have, Nice to Have, or Need to Cut"?
- After doing the exercise, set a date on your calendar where you'll cut those expenses off.
- The first time I did this, it saved us $1,500 a month or $18,000 a year.
[05:52] Downsizing your team members and collaborators
- Use the same exercise. Categorize which roles ones are must-haves, nice to have, and need to cut.
- In my case, an assistant is a must-have. I will cut everything else before I cut my assistant.
- Collaborators are classified vendors and partners.
[08:02] Interest fees, credit card payments, and debt servicing.
- Remember: Lenders don't want you to default.
- If you're in danger with the monthly payments, talk to your lender.
- They would rather get something than nothing. Work with them to give you more breathing room.
[10:30] Why you should not cut on your Ad Spend
- Law of supply and demand: As supply goes down, demand goes up, and when demand goes up, prices go up. We're in the opposite of that right now.
- Fear-based businesses are cutting down on their Ad Spend making the clicks, leads, and acquisition costs cheaper.
- I spent more money on ads in the last 48 hours that I did all last month.