Turning Expenses into Revenue
Hey there entrepreneurs,
Welcome to the Better Business Brief, where I share takeaways from:
- running a business I’m building to sell for millions
- my consulting with business owners building to sell for millions
- tips and tricks you can use to do the same
A few months ago, I found myself looking at an expense that I saw as unavoidable overhead. Specifically, I was renting out an office space to shoot content to help grow my business, as I actually get a lot of opportunities through posting content. It was purely a liability - just another monthly bill. But I realized I didn’t have to accept this expense as inevitable. Instead, I flipped that liability into an asset that now actually generates money...
So today, in less than 5 minutes, I’ll give you:
↕️ HOW I Turned a Liability into an Asset
💡4 Powerful Strategies Around Doing this
🔎 How to Spot these Opportunities in YOUR Business
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Ok so here’s what happened:
Instead of just footing the bill for this studio myself, I brought in three talented partners, including Danny, whose small content creation business I partially acquired in exchange for my expertise (background in creating content and running successful businesses), resources (the built out studio, equipment, softwares, etc.), and connections (ability to help us grow faster with the right people).
The other two partners were Devin and Collin. Devin handles a lot of our sales strategy, while Collin and Danny run the studio and the day to day operations, including all client work. Together, we turned that office and studio space into Orlando Content Studio, a division focused on helping entrepreneurs and intrapreneurs grow their businesses through high-quality video, photography, and content strategy. It was profitable within just a month and a half.
Here’s how I think about this opportunity in business now and how you can too:
First - rethink your expenses…
Most entrepreneurs accept expenses as a necessary evil. And don’t get me wrong - some expenses are only ever going to be that. But what if some of your overhead was secretly a revenue opportunity? That’s exactly what Orlando Content Studio became: an expense turned profitable. The next time you see a monthly bill, ask yourself: "How could this be turned into an asset?"
1. Here’s one way: The Sawdust Principle.. |
Lumber yards used to just throw away sawdust, thinking it was worthless. Then someone thought about it a little more and realized people would actually buy it for mulch, animal bedding, fuel pellets, and many other things. They began turning trash into profit. It's a perfect example of how hidden opportunities are sitting right under your nose. So think about the byproducts of what you do in your business and how you might be able to do something similar. Instead of just letting the content studio I built go to waste during all the time I wasn’t using it but was paying for rent, I decided to allow it to be repurposed.
2. Leveraging Shared Overhead for Spin-Offs |
The beauty of creating Orlando Content Studio was that we didn’t need to start from scratch. We already had office space, equipment, software, and some operational infrastructure. By sharing overhead, the new business launched quickly and with minimal financial risk.
A friend of mine recently told me he partnered with a roofing company owner who was killing it in his own business running ads, and decided to start doing paid consulting for other roofing business owners who didn’t have this skill.
Start looking at your business's existing infrastructure as a foundation for your next profitable spin-off.
3. Vertical vs. Horizontal Expansion |
With Orlando Content Studio, we expanded horizontally - adding services parallel to what we already needed internally. But you could also expand vertically, moving up or down your supply chain. If I’d been paying an outsourced content creation studio for my content and bought them, that would be more vertical.
Here’s some other possible examples:
📈 Vertical: A homebuilder buying a lumber supplier to control their material costs.
📈 Horizontal: A landscaper adding pool cleaning to better serve existing customers.
📈 Vertical: A coffee shop buying a coffee farm to directly control bean quality and reduce costs - moving vertically by owning more of its supply chain.
📈 Horizontal: A gym adding nutrition coaching services to serve existing clients better - expanding horizontally by offering complementary services.
📈 Vertical: An electric car company acquiring a battery manufacturer to secure its key component - integrating vertically to control production inputs.
📈 Horizontal: A dental practice introducing cosmetic Botox treatments to their existing patient base - expanding horizontally with a complementary service that meets more client needs.
Choose vertical for control and cost savings, or horizontal to deepen client relationships and diversify your offerings.
4. Accelerate Growth Through Acquisitions |
Technically, launching Orlando Content Studio involved acquiring part of Danny’s existing content creation business. Strategic acquisitions fast-track your growth by bringing immediate resources, talent, and market presence. You can replicate this by finding businesses already set up to leverage your existing infrastructure and customer base. If you think about opportunities hidden in your business, you could almost certainly acquire another business that would help establish one of these opportunities.
As a recap:
- Don’t immediately accept expenses as fixed liabilities.
- Find ways to monetize your business "waste."
- Share overhead to minimize risk when spinning off new ventures.
- Strategically choose vertical or horizontal growth based on your business goals.
- Use acquisitions to quickly scale and expand.
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Happy value-building to you!
See you next time for Better Business Brief,
-Brody
