Mar 1, 2021
When entrepreneurs run into profitability issues in their online businesses, their immediate response is to cut back on expenses.
However, while cutting back on expenses might be part of the solution, it’s not always going to fix your problems. Balancing your expenses relative to your revenue is often a delicate dance that only data and a properly organized profit and loss statement can fix.
That’s why in this episode, we discuss:
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Why your expenses will be disproportionately high when your business is small
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How to know if your business has a revenue problem as opposed to an issue with expenses
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Which expenses need to be audited the most often
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Why it’s crucial to look at your expenses relative to the amount of revenue you generate
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Why being profitable in the early stages of your business makes adding expenses easier down the road.
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How your bookkeeping can make tracking monthly expenses much easier