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It’s a challenging exercise to actively look for ways to reduce expenses and one that should be done at least annually. The lower your expenses, the higher your profit margin. Be sure you don’t cut expenses to the point of compromising your effectiveness or causing you to have to work harder than you need to. Remember it takes money to make money.



Be Realistic. Though you may wish to sell more products or book more business, doing so will require you to work more than you are, unless you can find a way to handle the increase without additional effort. If you’re a network marketer, you might choose to focus on building a bigger team underneath you. If you’re an independent service professional, you might decide to market more aggressively but pass the increased workload along to subcontractors instead of handling it yourself.

As you set goals each year, be sure to recognize your limits in terms of time, energy, and capacity. If you choose to increase your income, be aware that doing so requires other increases as well, including the possibility of increased stress. If you don’t want the anxiety that may accompany increasing your current sales levels, reduce your income expectations or increase your fees instead. Keep in mind there may be a point at which the market will no longer bear fee increases. If this is happening to you, consider developing new income streams for your business.

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