We all make mistakes in life. It’s how we learn. Some are embarrassing, and others are expensive. But if you make mistakes in business, it can cost you your company, your livelihood, your reputation, and the financial security of your employees. As a business leader, it is essential you are familiar with the costs of running a business can easily spiral out of control. Maintaining a tight grip on your cash is key.
Tax is one of the things that can really hurt each year. If you have not saved enough to cover the bill, you may be in danger of late payment. This can incur a huge fine and may lead to an investigation and even prosecution. Paying what you owe is essential, but there are ways to make sure it hurts a little less. You could check to see if your business is registered in a free zone that may make it exempt from certain taxes. You could also ask your accountancy service to change the payment dates to more regular intervals – little and often.
Recruitment is another potentially costly exercise. In some places, you may have a legal responsibility to advertise or interview externally for each and every role you recruit for. However, if you are exempt for this, recruiting within through promotion opportunities could save you a fortune. If you are looking for a skilled specialist, choose websites that allow them to promote themselves. This saves you the advertising costs, and you’ll see clearly each of the candidate’s qualifications and experience without having to ask for it. This is particularly handy if you’re not entirely sure what kind of person you’re looking for. You could also hire them as a contractor rather than as a member of staff.
Buildings cost money. The bigger they are, the more expensive they become. Heating, security, cleaning and safety checks add to the ongoing costs such as rent or a mortgage. Choosing a smaller premises and encouraging remote working cuts costs for your business dramatically. You can provide a small number of hot desks for sharing and a good-sized conference room for those one-off big meetings. The rest may be unnecessary for the type of business you run.
Travel is another huge cost that can quickly spiral out of control. Some bosses are keen to make all deals in person. This can involve rapid-booking flights and expensive hotel rooms for hospitality. Other business leaders are happy to engage their clients and suppliers by video call. The second obviously costs nothing. Are you really losing anything by not meeting in person? Certainly, some cultures around the globe continue to enjoy the tradition of face-to-face meetings. If you can avoid it, you could be saving a lot of cash, a lot of time, and a cost to the environment.
There will always be expenses and costs when you run a business. Efficiency measures should look at these bills as well as the time spent and the additional loss of your presence while away. This shouldn’t be a one-off kerbing either. Check your spend each year to see where else you can make some savings.