This episode is sponsored by my FREE training: 3 legal & tax mistakes made by creative entrepreneurs & how you can avoid them. Sign up for this free Masterclass here, and get ready to unf*ck your biz.
When I started my business, and what I commonly see with other business owners starting out, is in the beginning you have no clients, no income and very little business expenses. Then you get your first client and a little bit of income, then a second a client. And with a second client you take on a bit more business expenses. As you gain more clients you find yourself signing up for more costs - a content management system, social media scheduling platform, etc. When the year ends, we chalk our expenses up to starting out, and that the profit will come in future years. The next year we double our income, but our expenses go up and our profit not as much. Before you know it, you're several years in and expenses are still growing, leaving you struggling, even though you're making more money.
What's happening is "expense creep." Eventually you have to put your foot down and tell yourself when you can take on new expenses based on your revenue and profit margin. The goal is 20-30% at most of expenses to increase profit margin. One thing that can help is to go through an expense-reduction exercise.
Have a follow up questions or want to meet some fellow kickass biz owners who also are trying to get their shit legit? Come be a bestie and join us in the Facebook Group.
You'll learn: what the three mistakes are; how to fix them; and also how to work with me to get your legal & tax shit legit.