When you run a small business, it soon becomes clear that every penny counts. Very few startups turn a profit immediately, and you may find yourself having to be exceptionally frugal in those first few years to stay afloat. However, if even after a while you look at your accounts and things still aren’t adding up how you’d like them to, you may need to take a good hard look at your company expenditure. Of course, every business has outgoings, and the vast majority of them will be necessities that enable your company to function the way it needs to. However, by taking a critical view of the things you do and where your money goes, you can hopefully start to manage your money a little more carefully. Here are a few of the most common ways in which small businesses waste and lose money, and what you can do to save those all important pennies.
Everyone working in business understands how important it is to have the right team behind you. Your colleagues are the cogs in your machine, and without them, there wouldn’t even be a business – so it’s only natural that you want the best of the best. However, if you are ridding yourself of staff frequently, or staff are walking out at a rapid pace, you may need to rethink your attitude to hiring and firing. Both of these things cost time and money, two things which you probably don’t have a great deal of. It can feel desperate and urgent when you need staff at short notice, but even in this scenario, it is better to take your time with the process. This way, you can ensure that you fully vet the person before taking them on, reducing the chances of you realizing that you made a mistake a few weeks down the line.
General office costs
Your office could well be a hub of creativity and prosperity regarding your business model. But if it also costs you a small fortune, those great ideas will only get you so far. It can be hugely beneficial having modern systems in place in your office that cut out the middleman and increase productivity, but only if it does not also impact on your finances. The office printer is a common culprit, as many employees start to take advantage of it and print just about everything. Embracing managed print services can help you to keep track of your printing costs, which could save you a surprising amount of money.
When you first set up your startup, it can be easy to get tempted to implement as many services, apps, and programs into your systems as possible. You naturally want the best for your business, and if these programs claim they can help you succeed, obviously you’re going to use them. However, as time goes on you may realize that some are more useful than others, and you don’t necessarily need to be paying for the ones you no longer use. Check in regularly with your app and program usage, and if you’re not using some of them on a weekly basis, unsubscribe.