5 Business Expenses You’re Wasting Money On
As the New Year gets going, you might be looking for ways to reduce your business’ expenses to help improve your bottom line. Getting your business’ budget in order can be tough, especially in leaner times. For starters, try cutting these business expenses you’re wasting money on.
Unhappy, Unproductive Employees
Learning how to keep employees happy is part of running a small business successfully. Small perks such as reward certificates and appreciation days don’t have to drain your budget. But, unhappy, unproductive and unsuccessful employees are a major money-waster. Hire employees on a trial basis. If they aren’t able to perform the job well after a period of 8 weeks or so, politely part ways and start again.
Investing too much in inventory can seriously deplete your business’ cash on hand, and can be a major waste of money if the product you’ve invested in ends up not selling well. You might have to discount it greatly, reducing your profit or even losing money in the end. Start with a modest order of stock to see how an item sells. If it does well, you can order more. If it doesn’t, you haven’t spent all of your money on a dud.
Fancy Equipment and Furniture
Your office doesn’t need to have the best of the best when it comes to computer equipment and furniture. Cut costs by choosing moderately priced equipment or by making use of what you already have. If you need to buy more furniture to accommodate new hires, check out resource exchange shops or budget-priced stores. You can also have employees work from home to reduce your office expenses even further.
Too Much Energy
Take a look at your company’s utilities bills and energy use. If the electric bill is sky high and everyone leaves their computers and printers on 24/7, consider making an adjustment to cut costs. Have employees power down their workstations at the end of the day and ask them to switch off lights when they leave a room. The next time you need to buy new equipment, look for energy efficient models to save money over time.
Examine your marketing and advertising budget closely to see which outlets are providing a return on your investment and which aren’t. Stop paying for the outlets that don’t result in customers. You might find that you no longer need to pay for print ads in the newspaper, for example, if all of your new clients are coming to you through your social media profiles.
Once you’ve trimmed wasteful expenses from your budget, check out PaperDirect for ways to promote your business and celebrate your employees.