(This is a contributed post)
Business is a fine balancing act between spending money and earning a profit. Get this wrong and you can end up in big trouble, not only is a business that’s not earning money defying the whole object of its creation, but as the owner you can end up in debt and with serious money issues. Here are three places you might be wasting money- if you are, it’s time to reign it in.
Marketing methods without a strategy
Marketing is expensive, getting your name out there to the right people and ranking higher than your competitors takes both time and money. However, you can’t just throw cash at the problem and expect it to solve all of your problems in business, marketing needs to be strategic. You need to run campaigns and take a look at the analytics and insights to see how it performed. From there, you know what was successful and what wasn’t. Even small things like the time of day and the day of the week that you publish marketing materials will make a difference, you need to work out what these are. It’s not a one size fits all, different businesses of course have different customers with their own habits and shopping styles. If you run a campaign on Facebook and one on Google and one clearly outperforms the other, you know in future to focus most of your efforts on this platform. Don’t waste money using methods that aren’t working for you.
Employees being late or wasting time
Employees are everything in your business, these are the people that make it run. It’s your workers that do the day to day tasks that your company needs to function, and so their productivity is everything. You don’t want to be a slave driver, micromanaging your employees as research shows this simply doesn’t work. Instead of making employees work harder, it increases stress which can cause them to perform more poorly. Instead, focus on their health and happiness. Create a work environment that’s pleasant and positive, redecorate your office and praise hard work. Have a system in place that prevents workers from being late or wasting time, such as a clocking in system which makes it clear exactly when they’ve arrived.
Renting your business premises
Renting makes sense in the beginning, not every business owner can afford to buy their premises right off the bat. But as time goes on, you’re doing well and earning good profits, why not look into purchasing? Instead of wasting money on rent, your cash is going towards something that you’ll eventually own. You can make changes to the building, whether it’s knocking down or putting up walls, changing the windows and doors, creating extra rooms or non-destructive digging, these are all things you can do when you’re the owner of the building. You can adapt the space to be exactly what your business needs.
Are you wasting money in any of these three areas?