Succeeding into succession requires money-profit. Let’s kick off the year with more in our pockets!

It’s January (almost the end, actually) and like you, I’ve been reflecting, prioritizing, and planning. At the end of the queries, pondering, and scrolling, it always circles back to the one thing… cash flow. What is cash flow? It’s what you do with profit. How do you get more of it? Earn more profit. Yep, there is that word again: profit. To that end, I want more and so do you. There are 12 steps in this program (no, it’s not AA, but hey, they know what they are doing.) We are going on this 12 month journey together as we dive into the 12 key elements to accelerate profit.

Lowering costs – stopping the leaks. Here is what I did in January to increase my profit for 2026:

1. Every decision gauged against:
   1. Did it help get a client?
   2. Did it help keep a client?
2. Download statements into excel and make columns for categories.
   1. Use the ones in QB or other accounting software account labels so they align with your taxes. Your accountant will thank you!
      1. When you download a statement into CSV, save it as excel.
      2. Add column labels across the top that align with your accounts in Quick Books- below are just a few most companies have. The less accounts you have the easier to reconcile.
         1. Meals 50%
         2. Meals 100%
         3. Dues and Subscriptions
         4. Education
         5. Education
         6. Advertising
      3. Then, hover over the amount of the charge, click once and hold and drag to the appropriate column. Do this with all of your expenses.
      4. Sum each column at the bottom of your spreadsheet
      5. Then sum the bottom column to make sure you didn’t forget something. Voila!
   2. Cancel subscriptions that don’t get or keep a client
      1. Be cautious with content creation apps that cost $10 here and $39 there…AI seem inexpensive, but if you don’t have a plan, process, or Market Dominating Position, you are wasting hours playing in the same way you are scrolling on TikTok to read the news.
   3. Cancel accounts that are nipping at your heels, you don’t need them
      1. Reflect on spending
         1. Did I need that?
         2. Did it help me make money?
         3. Did it help someone else?
   4. If you really miss the service, you can rejoin, but cancel it, live without it; how do you feel now? Miss it?
   5. Interest charges?
3. Clean up spam, temptations = emails
   1. use the unsubscribe button in Outlook
   2. hover over the ‘unsubscribe’ link BEFORE clicking. Evil is clever!
   3. You may really like the gift you bought, but you can go back again, rejoin and benefit from another discount!
4. Stop spyware on my tv
   1. I follow Kim Komando and read The Current every day. She is full of tips. I’m sharing this because it was shocking!
5. Reduce Waste – food, clothing, dry cleaning, product & service selections labor; time. What can be changed, bundled, reduced?
   1. Bulk buying (Sams or Costco) or Family packs
   2. Eating out? Taking clients or staff out to eat?
   3. Do you fill up your car when gas prices are lower, or wait until you have to fill up?
   4. Staff?
      1. Overtime?
      2. Are your staffing hours efficient?
         1. if you are a retail or customer facing business, are you open when your customers frequent your services? Or could you close during predictable slow cycles?
         2. Can you use lower priced staff for slower times and higher priced staff for more critical activities?
6. Negotiate more favorable terms on debt
   1. Long term notes may not be renegotiated, but usually credit cards and lines of credit can be negotiated.
   2. Look for 0% refi deals- then set up the payment plan to pay it off 1 month before the 0% expires to ensure you take advantage of the refinancing.
7. Utilities:
   1. Lease or own? What is negotiable?
   2. Phone?
   3. Internet?
   4. Power?
   5. IT Support?
8. Any upcoming contract renewals?
   1. What is negotiable? Start looking now so you can really look into the details and find alternatives.
9. Services?
   1. Do you have a cleaning crew? Landscapers? Delivery drivers? IT? Lawyer? CPA? Transaction coordinator? Logistics?
      1. Could those services be provided by a part time person? Contract worker? Automation?

This exercise was eye opening to say the least! I hope you found ways to simplify and get a hold of expenses. Reducing costs is the most impactful action you can take in both your business and personal life. The value of a business is directly related to Discretionary Earnings, so less expenses and more profit mean high valuation. AND, by quieting the noise, temptations are reduced. Less temptations – more focus. You can focus on what is most important: Profit, People, Process, and Purpose.

My book details more cost cutting opportunities that effect Cost Of Goods Sold and margin impacts. Check out Chapter 1 for more.

We will tackle the next step, Market Dominating Position in February.

Cheers!