Are you guilty of wasting money in your business?
Surely not, you might think. You understand the need to save money (we assume), so you might not want to think you are wasting money at all. But here’s the thing – unless wisdom has prevailed, you may be wasting money within your business. In this article, we are going to look at some of the common ways business owners do waste money, so consider them, and if any of them relate to you, then it’s time to plug the leaks before you make any further losses.
Money-Waster #1: Wasting energy
No, we aren’t talking about you running yourself or your workers ragged with heavy workloads. Rather, we are talking about the energy you use that is later evident on your utility bills. You may be wasting money by leaving your heating on longer than it should be, or you might be forgetting to turn off lights when you leave a room. The more energy you waste, the more money you waste. Check out these energy wastage tips, and if you identify with anything written within the article, make the necessary changes now, before your next utility bill hurts your finances.
Money-Waster #2: Outsourcing certain tasks
There is a time and a place for outsourcing. If you don’t have the ability to do something yourself, for example, or if you don’t have the workforce to take on those tasks that might otherwise bind your time, then outsourcing is useful to you. However, if you do have people who can take on these tasks, and if you do have the time to do some of them yourself, then stop outsourcing them to others. You might also spend money on training for you and your workforce, so if there are any skills gaps, you can fill them now, rather than continue paying others to do what could easily be done in-house.
Money-Waster #3: Buying new technology
If your current technology is letting you down, then sure, replace it with something better. Productivity will be improved, and you will improve your staff’s morale. However, you don’t have to buy something brand new. There are often second-hand and refurbished alternatives that are still as functional, and are cheaper as well. If you don’t need every proverbial bell and whistle that comes with the latest tech, then do opt for those earlier models. But when you’re opening your wallet, don’t buy anything you don’t actually need. There may be certain things that would look good in your office, but if they aren’t going to be used on a regular basis, it might be cheaper to rent something occasionally or loan it from another business.
Money-Waster #4: Paying staff
We aren’t saying don’t pay your staff, and we aren’t telling you to undercut their wages. Rather, we are asking you to consider what staff your business needs. If you don’t have enough work for full-time staff, then you might want to hire people part-time instead. This is better than paying people for time that they are not filling, so the next time you need to start the hiring process, keep this in mind. Of course, you might not need to hire extra staff at all. If you do have people on your team with time on their hands, you might do as we suggested earlier, and train them up to do extra tasks within your business. They will have more to do, you will be paying them what they deserve, and you won’t need to pay anybody else to do the jobs that your existing staff can do themselves.
Money-Waster #5: Incorrect marketing
The more you put into marketing, the better, right? Well, yes and no. Sure, you should market as widely as possible, but only within the realms of your target market. If you are paying money on marketing to people who are unlikely to buy your product or use your service, you are ultimately wasting money. Narrow down what you are doing using the tips here to find your target market, and then concentrate your efforts on them. Not only will you save money, but you will also save time in the process. Then consider how you are marketing your business. You don’t always need to spend the big bucks on a huge marketing campaign, as there are cheaper ways to market your business. If you are spending a lot of money on marketing with little return, cut back on what you do, find low-budget alternatives, and then find your niche, so you don’t waste any more money.
Money-Waster #6: Not tracking minor expenses
You should be tracking larger expenses, but are you letting those smaller expenses slide? You might be overlooking those office snacks you bring in each week for your staff, for example, or the fuel you use on short trips to and from business meetings. One or two of such things won’t cause many dents in your finances, but these things do add up. You need to track each and every expense, even the smallest examples, and then cut back, or find an alternative. So, in the examples we have given, you might want to tell your staff to bring in their own snacks, and you might want to cut down on business meetings, or, at the very least, walk to them if they are only a short distance away. Follow the same principle with every expense your business makes, keeping hold of every receipt to ensure nothing gets unnoticed.
Money-Waster #7: Business loans
For starters, if you can do without a business loan, then don’t take one out. Save up for what you need for your business, or go without if something isn’t compulsory. However, if you have taken out any loans for your business, through a bank, credit card, or otherwise, it’s time you got rid of them. If a portion of your business income is going on paying back interest each month, that’s money wasted. Start paying back more than the minimum amount each month, consider consolidating your debts into a lower or zero-interest loan, and then dwindle them down until they are no longer a drain on your finances.
Finally
So, are you guilty of wasting money in your business? You very well might be, especially if you relate to anything we have said here. If so, follow our suggestions, plug those leaks, and then start to see your business prosper in the weeks and months to come.
