Write out a list of everything that you might need in each of these areas. This list may run into hundreds of entries.
Using the Journey Template sheet, detail the approximate cost of the item or the replacement value. Then estimate the lifespan of this item in months. For example, an office desk costing £100 might last you 10 years whilst a monthly subscription to Spotify at £9.99 per month will last you 1 month.
The sheet can then calculate the average monthly and average annual cost of each item. You can also then easily calculate projected expenditure across these areas (as well as Marketing and Salaries).
I have personally found this exercise very insightful because it’s easy to forget that things will depreciate over time and need replacing. Capital items such as machinery and computers may already be in your possession and currently cost you nothing each
month, but when they break, you suddenly have a large unexpected bill or a new monthly payment to make that you weren’t expecting.
Having an accurate overview of your running costs should help you plan for bumps in the road and unexpected bills that could cause serious cash flow problems. It’s also good to consider whether there are resources that you could lease, hire or purchase that will increase your productivity or income.
As the son of an accountant, my Dad would be very proud that I’m helping people with this kind of approach.
Once you’ve detailed all of the resources, score each of the 5 analysis columns out of 5 to work out your priority resources. Please select a relevant criteria to replace ‘OTHER’
- Value
- Necessity
- Regularity
- Usefulness
- Other
One of the great things about sorting things in the Brand Template is that you can sort things by each criteria so if you want to review your most regularly used resources in order, you can sort Z-A.
