What To Do If Expenses Exceeds Revenue?

[Spencer]

When your expenses outsize your revenue it simply means your business is not making any profits, but it's also not too bad because you will be able to make seine changes to the expenses and turn a profits, it shows you have a good business model since you are getting sales.

First of all, you'll have to look at your expenses and eliminate the non essentials, or find a way to source them for a cheaper price, if you have staffs it is also time to start thinking about downsizing, you should keep the core competent ones, getting outside investment might help too since you've already confirmed a profitable model.

 

[Highs]

This is usually the case. We face it everyday as human needs are insatiable. You just have to go back to your scale of preference, arrange your needs according to how pressing they are, with this technique, you will be able to eliminate that which you don't need easily and get the rest done. You just have to be careful why making a table of your pressing need so you don't end up putting that which you don't need before the which you need. By doing this it will save you from the temptation or difficulty buying things above your revenue.

 

[eLdavis]

In cases like this, I simply cut down on my expenses. I go through my list of expenses, then I remove the one I believe is less important or I can do without for now, then I focus more on the most pressing issues. To be honest it's not easy letting go of certain things just to be able to manage what you have, but i feel it is better than taking loans.

 

[Spencer]

Yes, you can implement it on an individual level too, but for individuals I think the only way you can jump out of such circle is by getting rich, because as we grow up our expenses do not reduce, they keep on piling up and if you work a job it is not easy to manage your salary to the point of accommodating your expenses.

The best thing to do is to start a wide business that brings in cash flow for you and with time you will be able to grow it and get out of the rat race.