Change Your Mindset

S3E30. How to Cut the Right Expenses & Make Your Balance Sheet a Fortress with Ken "Mr. Biz" Wentworth

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Would you describe your balance sheet as a fortress? Are your products and services properly priced at a profit or are they actually the silent killer of your business? Would you consider yourself someone who can see the future?”

If you’re not sure about the answers to any of these questions, you really should be — and Ken "Mr. Biz" Wentworth is going to help you get there.

Ken developed his business expertise during 20+ years in leadership positions, advising businesses, from Fortune 15 companies to startups, on how to establish a solid financial path. He is also the author of two bestselling business books that have helped thousands upon thousands of businesses:  “Pathway to Profits” and "How to Be a Cash Flow Pro."

If you aren’t sure about the state of your balance sheet, or if you just need to cut down on expenses, Ken has a process you can go through to evaluate it:

  • First, if you don’t have a working balance sheet, create one and put the systems in place to keep it updated.
  • Go through your expenses, line by line, and score each expense from one to three. Three means it has a direct impact on revenue, two means it has an indirect impact on revenue, and one means it has no impact on revenue. The last thing you want to do is reduce expenses that have a direct impact on revenue.
  • Next, go through each line and score them from one to three again, but this time, score each expense in relationship to its impact on customer service. Three means it has a direct impact on customer service, two means it has an indirect impact, and one means it has no impact.
  • Tally up the total of each expense. Protect the fives and sixes, those are the main drivers of revenue, and consider how you can cut any twos or threes substantially or entirely.


    • You might be wondering why Ken prioritizes customer service as much as direct revenue generation, and the answer is pretty simple — 62% of the customers that leave you will leave not due to price but due to customer service issues. “People simply won’t pay a premium for crappy service.”


    To learn more, and for the complete show notes, visit: petermargaritis.com


    Resources:

    • mrbizsolutions.com
    • Mr. Biz Radio
    • Twitter: https://twitter.com/mrbiztweets
    • Facebook: facebook.com/MrBizSolutions
    • LinkedIn: linkedin.com/in/mr-biz-wentworth
    • Instagram: https://www.instagram.com/mrbizsolutions/
    • Read: “Pathway to Profits” 
    • Read: "How to Be a Cash Flow Pro"
    • Listen: “S2E42. Being a Strategic Partner for Businesses with Ken “Mr. Biz” Wentworth”
    • Yahoo Finance: “Top Entrepreneurs You Can’t Miss During Covid-19”


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      Change Your MindsetBy Peter Margaritis, CPA & C-Suite Radio
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