It would be silly to throw money away, but it’s amazing how many business owners do just that on a regular basis. They don’t do it purposefully of course, but there are many business expenses that could be considered wasteful. What about your business? Are you guilty of wasting money? Chances are, you may be, even on those purchases that may be considered necessary. Hence this article. Let’s look at some of the ways you may be squandering the hard-earned cash you are making, with a few tips for some cost-effective alternatives.
Waste #1: Outsourcing to all the wrong places
There are times when outsourcing is important, especially if you are a small business, and you don’t have the funds to hire extra staff. Your skill level may be low in some areas too, so hiring the services of another firm is a good idea. On the other hand, you don’t always need to consider this option. You may have people on your team who can take on some of these tasks as part of their normal workload. It may be that with a little training or practice, you can manage certain tasks yourself. Why pay somebody else to do it when it can be done in-house? Even if outsourcing is the better option, you should still shop around and compare prices with different companies before hiring them.
Waste #2: Not cutting costs on small office supplies
It’s not the same expense as buying a computer, but even the small office expenses will add up after a while. So, consider your spending. For starters, how many office supplies do you need? If you have gone paperless, you probably don’t need to buy reams of paper, sticky tape, and post-it notes. However, if there are items you do need, you don’t need to pay top dollar for them. You could make a deal with your supplier, especially if you are a regular customer. You should also check online, where you can buy the same product you would find in your local store at a cheaper price. When buying ink, for example, you can make considerable savings if you buy ink cartridges from Cartridge People. Buying in bulk is also a good idea, as you can make further discounts, despite the initial expense at the outlay.
Waste #3: Buying technology you will rarely use
You want to be the best business on the block. We get it! But do you really need to stock your office space with the latest in technology? Yes, it might look awesome sat in your office, and it will probably impress any visitors to your business. But looks aren’t everything, and if the tech is gathering dust from underuse, you probably don’t need them. So, if you aren’t using something, consider selling or renting it out to make back some of the money you have wasted. Then only buy the equipment you need. It doesn’t need to be brand new. If you don’t need all the fancy bells and whistles of the latest piece of tech, buying something second-hand or reconditioned may be the most sensible choice.
Waste #4: Wasting money on travel expenses
It’s important to network, we get that, but do you have to do it out of the office? Heading across town to a business meeting at every opportunity not only wastes productivity, it wastes money as well. Okay, so you may enjoy the excuse to get some fresh air now and again, but sticking your head out of the window is a much cheaper exercise. You can utilise video conferencing software if you want to speak to somebody, whether it’s a one-to-one conversation or a full-on powerpoint presentation to a group of people. Then there are business events, such as trade shows. They are a great place to network with others, but you can cut down on the events you attend, perhaps attending local shows, rather than going to those events happening miles away from you. Concentrating your energies on a few may be far more profitable.
Waste #5: Depleting money through marketing costs
Okay, so marketing is supposed to bring money in, so this is one area you shouldn’t overlook. Still, there are ways to make your marketing cost-effective, such as using digital marketing, and targeting specific demographics rather than the many. You can also hire others to spread the word about you, such as affiliate marketers, who will only make back money when they have benefited your company. As we said, you overlook marketing at your peril, but don’t waste money by using outdated methods.
Waste #6: Paying too much on your insurance
As a business owner, you will need insurance, from public liability to property insurance. However, you should check your policy. While you want to protect your interests, there may be some elements on your policy that are unnecessary for you. Ring your insurance company and see if you can lower your rates through some small adjustments. If you have used the same insurance company for a while, your needs may have changed, as well. If you have moved premises or altered your way of working, you may be paying for things you no longer need. Of course, you should also use a price comparison service, and if you can get the same insurance policy for less, make the move. Or, at the very least, tell your current provider about the cheaper offer and they might match it or even reduce your costs to retain you as a customer.
The above are just some of the ways you may be wasting money within your business. If any of them ring true for you, then it’s time to do something about it, making cutbacks and savings where you can. There are other ways you may be wasting money, but an accountant will tell you where this may be, and give you further advice about managing your money. We hope you found our advice helpful, and we wish you every success, in whatever business venture you are involved in.
Are you overspending money in any of the areas we mentioned before?