Marie Kondo Your Finances: 6 Steps to Declutter & Grow Your Business

As a longtime fan of Netflix’s Tidying Up with Marie Kondo, I’ve often marveled at how decluttering a closet can transform a person’s mindset. But what if we applied Kondo’s iconic “6 basic rules of tidying” to our financial lives? For entrepreneurs, periodic financial “tidying” isn’t just about neat spreadsheets — it’s about building a business that sparks joy, clarity, and resilience. Here’s how to do it.

1. Commit to Tidying Up Your Financials Periodically

Marie Kondo’s first rule is about commitment — approaching tidying as a transformative ritual, not a one-time chore. Similarly, financial clarity requires routine.

Block quarterly, half-yearly, or annual “money dates” to review your books. Treat these sessions like you would for critical business strategy meetings: cancel other calls, brew a strong cup of coffee, and dive in.

Why? Just as skipping workouts leads to flabby muscles, neglecting financial reviews breeds inefficiency. Regular check-ins help you spot trends (do we have rising overhead?), celebrate wins (hello, profit margin growth!), and course-correct before minor issues balloon into crises.

2. Discard Expenses That Outlive Their Purpose

Kondo urges us to thank and release items that no longer “spark joy.” Apply this to your business expenses. Audit every line item and ask:

• Ask, “Does this expense still add value?”: See if you can get rid of at least one software subscription you rarely use.
• See if there is a cheaper alternative. For example, Could a $200/month tool replace a $2000/month service?
• Ensure the expense aligns with current goals. Should we continue paying for this legacy marketing spend that has not driven ROI in 12 months?

Action step: Cancel or renegotiate at least three expenses this quarter. Then, redirect those savings to growth levers like R&D or customer retention.

3. Understand Your Money Collection Cadence

Cash flow is the lifeblood of your business. Yet, many entrepreneurs ignore the rhythm of money in vs. money out. Channel Kondo’s “tidy by category” approach:

• Map your receivables: How long do clients take to pay? Are late payments eroding your liquidity?
• Optimize payment terms: Shorten net-60 to net-30, net-90 to net-60, or offer discounts for early payments.

Pro tip: If clients consistently pay late, consider requiring their deposits upfront.

4. Finance Hack: A Streamlined Way to Do a Cash Flow Forecast

Forecasting doesn’t need to be daunting. Borrow Kondo’s “keep it simple” ethos with a 12-week rolling cash flow forecast:

1. List expected income (expected client payments, product sales, etc.).
2. Subtract fixed costs (rent, salaries).
3. Subtract variable costs (inventory, marketing).
4. Calculate net cash flow.

Hack: Use a color-coded Google Sheet—green for surplus, red for shortfalls. If red appears, brainstorm fixes. Do you need a Cash Flow forecast template? Please contact us.

5. Imagine Your Ideal Revenue by Channel

Kondo asks clients to visualize their “ideal lifestyle” before tidying. Do the same for your revenue streams:

• What’s your perfect revenue mix? Is it 40% DTC sales, 50% retailers, and 10% affiliate income? Something else?
• Which channels are underperforming? Which are overperforming? Double down on high-margin areas.
• Test new channels: Allocate 5% of profits to experiments. Should we try specialty channels?

Case study: A Fast-Growing Startup Introduces A Beloved Filipino Tradition To Tea Lovers

6. Repeat Steps 1-5 Every Quarter and Every Year

Tidying isn’t a one-and-done project. Schedule recurring financial reviews to:

• Adapt to market shifts. Inflation, supply chain hiccups, macro trends, and other factors will change your plan.
• Celebrate progress: Did we add a new retailer last quarter? Pop the champagne!
• Reset goals: Aiming for 3X revenue growth? It’s time to brainstorm tactics, cut spend from underperforming areas, and laser focus on what’s working.

The Bottom Line: Clutter-Free Finances = Business Joy

Marie Kondo teaches us that tidying isn’t about perfection—it’s about creating space for what matters. By regularly scrubbing your finances, you’ll gain control, reduce stress, and free up resources to invest in the work (and life!) you truly love.

So open up your financial “closet,” roll up your sleeves, and ask: Does this book spark joy? If not, you know what to do.

P.S. Share your #FinancialTidying wins with me on LinkedIn — I’d love to hear how this method transforms your business!