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 Start by printing out, in as much detail as possible, your income and expenses for the year. If your business utilises accounting software this should be fairly quick and easy. Even data entered into an excel spreadsheet should provide you with enough information to make changes and decisions for the coming year.  

A good place to start is by analysing your expenses; fixed expenses; income generating expenses and other expenses.

Fixed Expenses

• Spend a bit of time doing comparisons with other phone, internet, electricity suppliers and insurance companies. Remember though don’t just compare price, also compare what you are receiving for your hard earned dollar. You may be able to bundle phone and internet together to get a better deal. Investigate free or low cost alternatives like phone calling cards for toll and cellphone calls or Skype.
• Rent – is there a way to generate income from the space you have? Do you have a spare desk that you could ‘rent a chair’ to someone who doesn’t have their own office space? Do you have storage space that you can rent?
• P O Box – can you share your address and therefore rental with other small business owners. Just make sure they are people you know and trust.
• Leased equipment – is there a way to generate income from your equipment when you are not using it? Can you offer use of it to others working form home in your area and charge them on a per use basis or for a set monthly charge.

Income Generating Expenses

These are the expenses where you have to spend money to make money.