6. How do we keep business expenses lean when everything is getting more expensive?
What staying “lean” means
When we want to keep expenses lean, we usually want to cut costs without hurting the business.
But staying lean isn’t about cutting everything, it’s about seeing where money is going so we can make intentional choices. It’s a business where every expense has a clear job.
And that intentionality comes from looking at your spending.
How to see where your money is going
Ensuring each expense has a clear job starts with a regular expense review.
That means looking at a record of what you’ve spent, such as bank statements or a list of expenses from your bookkeeping software.
Once you have that information, you can evaluate each expense based on:
how much it costs
how much of your total spending it represents
how necessary it is for your business
and how you feel about paying for it (yes, feelings matter here)
Looking at your expenses this way gives you a clearer picture of what’s really supporting your business.
How to do an expense review (four angles that give you a full picture)
If you want to keep expenses lean, you need a clear view of where your money is going.
I like to look at spending from four different angles because each one tells you something important about how your business uses money.
1. Review expenses as a percentage of revenue (affordability)
Purpose: Understand how much of what you earn is being used to run the business.
What it tells you: “Is this spending sustainable for my revenue right now?”
Looking at the percentage of revenue helps you see:
when expenses are eating too much of your income
whether rising costs are outpacing what you’re earning
whether the business can support your current tools, platforms, and subscriptions
2. Review expenses as a percentage of your total spending (impact)
Purpose: Understand how much of your total spending budget each expense takes up.
What it tells you: “Out of everything I spend, how big is this expense really?”
Looking at the percentage of total spending helps you spot:
the expenses that make up most of your budget
things that look small in dollars but big in proportion
recurring expenses where you might reduce cost by adjusting how you pay (annual billing, prepaying, bundling tools)
3. Check for duplicates or overlap (efficiency)
Purpose: See if you’re paying for multiple tools or services that do the same job.
What it tells you: “Is there one tool that could replace others?”
You’re looking for:
tools that do the same job
things you’re paying for but barely use
tools you already have that could replace others
4. Notice how you feel about each expense (capacity)
Purpose: Notice the emotional and energy costs that don’t show up in the numbers.
What it tells you: “Does this expense support me or drain me?”
Your reactions matter because:
if something constantly annoys you, it drains energy
if you love an expense, it probably supports your work or saves time
if an expense feels heavy or stressful, it deserves a second look
The Takeaway
Regular expense reviews keep your business lean without cutting everything.
Looking at your expenses from these four angles gives you clarity about:
affordability (% of revenue)
impact (% of total spending)
efficiency (duplicate/overlap check)
capacity (how it feels to pay for it)
When you use all four together, you make decisions that are clear, aligned, and supportive of your business.
