Image Credit: File Photo
If your brand is to become or remain an industry leader, it must focus on reducing overheads as much as possible. The more money your business saves each day, the bigger its profitability will be at the end of the year.
All those extra nickels and dimes can add up to hundreds or thousands of dollars each year, which is why you must adopt a frugal mindset. Identify where your company might be going wrong financially to avoid spending a penny more than necessary. Learn about the four common ways businesses waste money.
-
Failing to Review Expenses
Every entrepreneur should have a firm grasp of their business overheads. Tax seasons shouldn’t be the only time you track and review expenses, as you must always remain in full control of your company’s finances.
A clear understanding of your business’s outgoings will provide a clear idea of where your company is overspending and how it can save money. For example, if your electricity bill has increased or seems too expensive for your company’s usage, it might be time to introduce a new electricity plan for your business in Houston, TX, or another location. A quick phone call could save you thousands of dollars on electricity over the years.
-
Investing in Vanity Marketing Metrics
It is time to stop wasting your time and money chasing vanity metrics (e.g., social media likes and views) and start investing your revenue into marketing efforts known for generating leads and increasing sales. For example, you could focus on boosting sales via email marketing, influencer marketing, or compelling referral programs. If a marketing manager can’t prove a tactic will result in a purchase, it is likely an unnecessary business expense.
-
Unnecessary Team Meetings
Large companies waste an average of $100m per year on team meetings, as a recent survey found employees don’t need to attend a third of them but do so out of obligation. Save your company precious time and money by encouraging employees to spend less time in unnecessary meetings and more time crossing tasks off their to-do lists. It could boost internal productivity and help staff generate more sales at a quicker rate.
-
Buying Swags and Perks
Business perks and swag might seem like a cool way to keep your staff happy and promote your brand to clients or target customers, but it could place much financial pressure on your company. Branded sweatshirts or free staff lunches are a nice touch, but they could come at the cost of various business improvements.
As your target audience and employees are more aware than ever of the dangers of consumerism, it might be better for your bank balance and planet Earth to invest money back into its operations. For example, scrap promotional products and use the money for employee education and training opportunities or introduce automation. You can trust an improved working life, and career development opportunities will be more welcomed by staff than a free lunch or a company t-shirt.
