Ways Your Small Business Wastes Money

Ways Your Small Business Wastes Money

Running a business can be difficult. In the first few years, you work very hard to make a profit or even not to lose too much. It can take a long time before your profits seem worth all of the hard work and you can often feel like you are wasting both your time and money.

The sad fact is most small businesses waste far too much money. This can lead to many going out of business before they’ve really had a chance to get going. While your primary focus is making money and growing your business, sometimes, it’s worth taking a step back and looking at all of the ways you might be wasting money and how to stop.

Staff

Hiring staff is one of the great joys of starting your own business. It means that you’ve made it, you are the boss. But, do you need them? In the beginning, there’s a lot of work to do and hiring staff will undoubtedly make it easier and give you more time to focus on the bigger jobs. But, staff are a massive expense, and they’re not always necessary.

Only hire those people that you can’t manage without. Do as much as you can yourself, call in favors where you can and outsource any work that needs a specialist. Then, hire more permanent employees as and when you can afford them.

Suppliers

Many businesses waste money simply by not getting the best deals. They sign contracts with the first suppliers that they speak to or those that they are familiar with from previous jobs. Make sure you compare services and costs before committing to length contracts and try to negotiate for better deals where appropriate.

Rent

Rent is another significant expense for many businesses. Think about what you actually need. If your business is a shop or restaurant, passing footfall is essential. If you just need an office, ask yourself how important the location is and how much space you actually need? Don’t pay over the odds for an office in a trendy area if you don’t need to. You can always move later on when you can afford it, and it’s more worthwhile.

Other Bills

Your business utility bills are exactly the same as your personal household bills. Just like suppliers, you should shop around for the best deals and tariffs and negotiate where possible.

Insurance

Insurance is an essential business expense. It’s costly but could save you a fortune and prevent legal action in the future. You’ll need buildings and contents insurance, liability insurance if you deal with the public, and car insurance from if you have business vehicles. Even if your business is home-based, you may want to add equipment to your home policy and take out liability insurance for when you attend public events or welcome clients into your home.

Marketing
Marketing is something it’s easy to spend far too much on. Without a strict budget, you can find yourself spending more and more without a definite aim. Come up with a marketing strategy for your business and consider hiring freelancers from upwork.com instead of big marketing firms.

Source

https://www.openbusinesscouncil.org/2018/06/ways-small-business-wastes-money/

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