Struggling Local Business Help: Step #2 Cut Unnecessary Expenses

If your Hemet or San Jacinto business is barely scraping by, here’s the cold hard truth: Keep wasting money on things you don’t need, and you’ll be closed by 2025. Every dollar matters right now, and if you’re not spending it on what keeps your business alive, you’re digging your own grave.

But here’s the good news: You can stop the bleeding. This post will show you how to cut the deadweight in your budget, keep only the expenses that truly matter, and focus every penny on what drives sales and keeps customers coming back.

By the end, you’ll know exactly how to make smarter spending decisions to turn things around before it’s too late. Let’s get to work.

What You Can Expect to Learn from This Post

By the end of this post, you’ll have a clear plan to stop the financial bleeding and make every dollar count. No fluff, no excuses—just actionable steps to save your business and start moving in the right direction.

Here’s what we’ll cover:

1. How to Identify Must-Have Expenses: Learn to pinpoint which costs are essential for keeping your business running and supporting growth.
2. Smart Ways to Evaluate Spending: Discover how to assess the return on investment (ROI) of your expenses and prioritize what brings value to your business.
3. When and What to Cut: Understand the difference between wants and needs, and make informed decisions about what to let go without hurting your bottom line.
4. How to Measure Customer Impact: Learn why customer-focused spending matters most and how to align your budget with what your customers care about.
5. Practical Action Steps: Get a simple, actionable plan to reorganize your expenses and make every dollar count toward the success of your Hemet and San Jacinto business.

Now, let’s get straight to it!

Here are the 5 steps you need to take to figure out which expenses are worth keeping and which ones are dragging your business down.

Cut the Fat: 5 Steps to Spending Smarter & Saving Your Hemet San Jacinto Business

You don’t have cash to waste. Every unnecessary expense is a nail in the coffin, and if you keep spending like this, your business won’t make it to 2025.

To survive, you need to figure out what expenses are keeping the lights on and bringing in sales—and cut everything else. These 5 steps will help you focus only on what matters and stop wasting money on things that aren’t helping your bottom line.

Time to get serious. Let’s dive into the steps.

If you’re unsure whether cutting more costs is the right move for your business, check out this post: Should I Cut More Costs, or Will That Hurt My Business Further?

1. Pull Out Your Budget

Before you can figure out what’s absolutely necessary, you need to know exactly where your money is going. Grab your budget, bank statements, debit card records, and even paper receipts. Go through every expense, line by line.

For the clearest picture, review the last 3–6 months of expenses. If your business has seasonal ups and downs, look at an entire year. This will help you pinpoint what’s essential and what’s not.

Here are five free tools that can make reviewing your expenses a whole lot easier:

• Google Sheets: Offers free templates for budgeting and financial tracking.
• Wave Accounting: A free tool for tracking expenses and creating reports.
• Mint: Monitors your spending, income, and account balances all in one place.
• Expensify: A free option to organize receipts and keep track of expenses.
• EveryDollar: A simple tool to track spending and stick to a budget.

Action Steps

1. Review your monthly expenses and highlight every cost.
2. Sort each expense into three categories:
   • Must-Haves: Expenses you can’t run your business without.
   • Nice-to-Haves: Costs that are helpful but not critical right now.
   • Unknowns: Expenses you’re not sure about or don’t fully understand.
3. Use this categorized list as the foundation for deciding what to keep and what to cut.

Knowing where your money is going is the first step toward smarter spending decisions.

2. List Core Expenses

Let’s focus on the must-haves—the costs you absolutely need to keep your business running day-to-day. These are the non-negotiables. Without them, your business grinds to a halt. Here are some examples:

• Rent or Mortgage: If you have a physical location, this is priority number one. No location, no business.
• Utilities: Electricity, water, and internet are essential for running your operations and staying connected with customers.
• Inventory: For product-based businesses, this is what you sell. No inventory means no revenue.
• Supplies: Think tools, cleaning materials, or office essentials—anything you need to operate.
• Staff Wages (If Applicable): Your employees help keep the wheels turning. Cutting wages might save you money short-term, but it could harm your ability to serve customers.

Action Steps

1. Go through your budget and highlight each expense tied directly to keeping your business running.
2. Use a free accounting tool like Google Sheets or Wave Accounting to track these core expenses.
3. Create categories for your essentials, so you have a clear picture of what’s absolutely necessary.

These are the costs you need to prioritize every time, no exceptions.

3. Evaluate ROI

ROI, or Return on Investment, helps you decide if an expense is pulling its weight. In simple terms, it shows if what you spend is giving you enough back to make it worth keeping.

Here’s a basic example:

• Positive ROI: You spend $100 on an ad, and it brings in $500 in sales. That’s a 400% ROI, meaning you made 4 times what you spent.
  Calculation:
  ROI = (Return – Investment) ÷ Investment × 100
  ROI = ($500 – $100) ÷ $100 × 100 = 400%
• Negative ROI: You spend $100 on an ad and only make $50 in sales. That’s a -50% ROI, meaning you lost half of what you spent.
  Calculation:
  ROI = (Return – Investment) ÷ Investment × 100
  ROI = ($50 – $100) ÷ $100 × 100 = -50%

ROI Beyond Money

ROI isn’t just about dollars—it’s also about time and efficiency. For instance:

• A marketing automation tool might not directly bring in sales but could save you hours of work. That free time lets you focus on growth, which adds long-term value.

How to Apply ROI to Your Business

• Focus on What Works: Keep expenses that deliver measurable benefits, like ads that drive sales or tools that save time.
• Cut What Doesn’t: Eliminate costs that don’t bring in revenue, save time, or improve customer satisfaction.

Action Steps

1. Calculate ROI for Each Expense: Compare each cost with the revenue, time savings, or customer value it brings.
2. Keep What Delivers: Prioritize spending on ads, tools, and services that produce clear results.
3. Let Go of Poor Performers: Cut anything that doesn’t justify its cost—whether in money, time, or impact.

When every dollar you spend has a positive ROI, you’re not just spending—you’re investing in your business’s success.

4. Separate Wants from Needs

Let’s face it—are you spending on things that look impressive but don’t actually help your business grow? Maybe it’s that fancy software with features you never use, a premium internet plan that’s overkill, or those professional retainers that aren’t pulling their weight.

Sure, they’re nice to have—but are they keeping your business alive? Probably not.

Needs drive growth; wants can wait. Right now, your focus should be on what keeps the lights on and customers happy. It’s time to be brutally honest and get strict about what stays and what goes.

Common Unnecessary Expenses to Watch For

1. Multiple Software Subscriptions: Why pay for tools that overlap? One solid email or analytics platform can do the job.
2. Unused Memberships or Services: Coworking spaces, professional associations, or premium features you’re not using? Cut them.
3. Underperforming Marketing Channels: Stop throwing money at ads or platforms that don’t deliver results. Focus on what works.
4. Over-the-Top Utilities: Premium internet or phone plans often have features you don’t even need. Scale back.
5. Pricey Retainers: Paying for high-end accountants, consultants, or designers? Consider DIY or affordable alternatives until you’re back on track.

These aren’t spur-of-the-moment splurges; they’re recurring costs that might feel normal but aren’t helping you survive. Letting go of these “wants” can free up cash for the expenses that truly matter.

Action Steps

• Ask the Tough Questions: For every expense, ask yourself, “Does this help my business survive or grow?” If the answer is no, it’s a want.
• Keep What Counts: Rent, utilities, inventory, and proven marketing efforts—these are your non-negotiables.
• Cut the Dead Weight: If it doesn’t drive sales, serve customers, or keep your business running, let it go.

Wants can wait. Save your resources for what really matters—YOUR STRUGGLING HEMET SAN JACINTO BUSINESS!

5. Determine Customer Impact (The Most Important Step)

This is where everything comes together. You’ve sorted your budget, pinpointed core expenses, evaluated ROI, and separated the fluff. Now it’s time to zero in on the heart of your business—your customers.

Your spending should serve one purpose: keeping your customers happy, meeting their needs, and bringing them back for more. Why? Because your customers are the lifeline of your business. Without them, there’s no revenue, no growth, and no future. If an expense isn’t creating value for them, it’s money wasted.

How to Figure Out Customer Impact

1. Customer Feedback: Are they raving about your products or pointing out frustrations? Feedback is gold—it tells you what’s working and what needs to change.
2. Sales Reports: What’s selling and what isn’t? Investments that don’t align with customer needs won’t generate sales.
3. Marketing Analytics: Are your campaigns reaching the right people and driving them to your business? Spending on platforms your customers don’t use is a waste.
4. ROI on Customer-Focused Expenses: Does every dollar spent lead to more sales, better reviews, or stronger retention? Tools that enhance the customer experience—like faster delivery or better materials—are worth it.
5. Competitor Analysis: What are competitors doing that resonates with your customers? If they’re filling gaps you’re missing, it’s time to adjust.

Action Steps

• Highlight What Works: Focus on expenses that improve the customer experience, like quality products, fast service, or user-friendly tools.
• Reevaluate the Rest: Ask yourself, “Will my customers notice if I stop paying for this?” If the answer is no, cut it.
• Prioritize Impact: Make customer satisfaction the guiding star for your budget decisions.

By prioritizing spending that directly benefits your customers, you’re not just cutting costs—you’re making every dollar count toward your survival and success. Happy, loyal customers are your best chance to turn things around and thrive.

This isn’t just another step—it’s the survival strategy your business depends on.

Survival Strategy: Align Every Dollar with What Keeps You in Business

Prioritize your spending based on customer impact. Every dollar should serve a purpose: keeping your business alive and thriving by creating happy, loyal customers. To make this happen, you need to know who your target customers are and what matters most to them.

Our course, The Dirty Little Secrets About YOUR Target Market: Beginner’s Guide to DIY Branding & Website Marketing, gives you the tools to:

• Uncover your ideal customers.
• Understand their needs.
• Build a spending strategy that works for your unique business.

This isn’t just about survival—it’s about turning your struggling business into a thriving one.

Next up in this series: Struggling Local Business Help: Step #3 Choose the Right Target Market for Your Local Business

Here’s What You’ll Get

These are some of the benefits of our Target Market Course:

• Free, actionable tips delivered straight to your inbox to help your business survive and grow.
• A complimentary personalized report tailored to your business, guiding your marketing efforts.
• Proven methods to authentically connect with your audience and drive real results.