You can’t cut your way to wealth.
But you can improve the return you receive on your investments in space, equipment, staff and tools.
Here’s how to do it:
1. Print out a list of monthly expenses ordered from highest to lowest.
2. Look at each expense and ask, “Do I make money from that investment each month?” If your spend isn’t bringing a return, first look for a way to make money from it before you eliminate it.
For example, ask your bookkeeper, “How can I leverage your service better right now?” I’m sure they will have an answer; I’m also sure few people ask.
Ask your mentor, “What’s the best thing I can do to get the most value from your service this month?” He or she will tell you (I wish everyone asked me this question).
Ask your landlord, “What other areas of the property can we use?”
Ask your coaches, “Do you want more opportunities right now or are you happy with your life?” All staff people should generate 2.5x what they’re paid or buy you the time to create that revenue for the gym. If a staff person wants more, provide “intrapreneurial” opportunities. Download our “Intrapreneurialism 101” guide here.
Ask your cleaners, “What else should I be doing to make the atmosphere welcoming here?”
Ask your website provider, “How can I improve conversion from my site to a free consultation each month?”
Watch John Briggs talk about cash-flow management here.
Sometimes, of course, you will want to cut an expense. But you’re smart: There’s a reason you signed up for that service or software in the first place. Chances are, you don’t need to cancel—you just need to optimize.