It can be really easy to spend money in our businesses. There are so many amazing courses and products promising to help us grow, and when a sales page speaks directly to us, we convince ourselves we need it to advance. Meanwhile, we forget about all the other courses we already bought and never finished — the ones that teach the exact same thing. FOMO is one of the biggest drivers of overspending in business.
I spend a lot of time looking at how entrepreneurs spend their money. It’s my job, but honestly it’s also a bit of a guilty pleasure — what are they buying, when did they last buy something similar, and how many near-identical courses do they already own? It’s so easy to pull the trigger and type in your card when purchases are cheap and quick, especially with the low-ticket-offer explosion of recent years. So where do online business owners overspend the most? Here are the five most common areas — and how to rein them in.
1. Courses and continuing education
There are endless courses and products that help you learn and expand your knowledge, and continuing to learn is genuinely a good thing. The overspending comes from shiny object syndrome: the last course “didn’t work,” so you assume the next one will — when in reality you didn’t do the work or finish the last one.
What you usually need isn’t another course. It’s a system that helps you build habits and routines so you actually get things done. Buying yet another program just wastes time and money that could go toward something far more productive. Get a handle on your time, routines, and the systems you already have before you buy more.
2. Assistants
I’ve had multiple clients with more assistants than they know what to do with — some even doing the exact same work. That’s a great way to spend money you don’t need to.
Having help is good; it takes pressure off and gets things done on time. But when you have too many assistants, don’t know what they’re all doing, and have people duplicating each other’s jobs, you’re overspending. Evaluate what’s actually going on, where the money is going, and what each assistant is really doing for you.
3. Memberships
Memberships are easy to buy — often under $30 — and they may help with something in your business. But how many times have you joined a membership and then never logged in to use what’s inside? When did you last even know what was in it?
I’ve been here too. The low cost makes it easy to forget the recurring payment entirely. Memberships are a reliable revenue source for their owners precisely because so many people buy and then never use them. Audit yours and cut the ones you’re not actually using.
4. Software to automate posting
There are countless tools that automate your social media posting, and many dangle tempting lifetime deals. You buy, use it briefly, then forget about it or decide you don’t like it — and go buy another. Before long you’re subscribed to Buffer, Hootsuite, MeetEdgar, and Planoly all at once, using maybe one but paying for all four.
Those costs add up. Maybe you do need several, but you probably don’t. Figure out which ones you’re not using and cancel them, then see which functions you can combine into a single tool and cancel the rest.
5. Template systems
Templates are everywhere — Instagram, Pinterest, ebooks, Facebook posts, captions, Stories, and on and on. But do you really need 18 different sets of Instagram templates? How many are duplicates or near-identical across the sets you’ve bought? There are only so many genuinely different templates before they start repeating. And you’re a smart business owner — you can make your own or evolve the ones you already have into something new.
How to curb overspending in your business
Track your expenses
The single biggest thing most business owners don’t do is track their expenses — so they have no idea what they’re actually spending on. They’re carrying memberships and subscriptions they don’t even remember signing up for. Tracking your expenses not only reveals the overspending, it shows you exactly where money is leaking out.
Give yourself a spending budget or allowance
A lot of people dislike budgeting, but if you just glance at your bank balance to decide whether you can afford something, your business will eventually go broke — and a broke business is a business that fails. You can recover with more sales, but it’s far better to have a plan. Know exactly where your money is going and how much is available in each of your buckets at any given time.
Audit your spending and what you already own
Beyond tracking, run regular audits. What have you bought? Where’s the money going? What are you paying for but not using? How many purchases fall into the categories above? Do this at least quarterly. I know you’d rather not look at your numbers, but that’s one of the many hats you signed up to wear as a business owner.
So be honest with yourself: How many of these common overspending areas do you fall into? Where can you cut back? Then imagine what you could do with that money instead — the things that would actually help you grow your business.
This article is for general educational purposes only and is not legal, accounting, or tax advice. Always consult a qualified professional about your specific situation.