These Money Wasters Are Draining Your Business
Whether you’re part of a large multi-location corporation or a small family-owned business, money is a very important factor in every decision you make. Do the job poorly, and you can’t afford to grow. Do the job “too well,” and suddenly you’re making more than you can handle. Both scenarios can be a slippery slope, and it’s easy to fall into money wasting habits that disguise themselves as helping hands. Once you go down that path, it’s hard to find the right avenue to get back on track. These big money wasters are draining your business:
Overstaffing. It’s a harsh reality that no one likes to think about; layoffs are every employers nightmare, but it’s also one of the biggest money wasters in any business. It’s not always a hiring mistake, because businesses are based on clientele, and you might have needed a large staff at one point, but changes happen, and you have to adapt to those changes. Your top employees — the ones with the greatest skill levels, whether it be in sales or memo composition — should be your main choices; if an employee is constantly looking for something to do, then maybe something needs to change.
Wasted time. To stem off the overstaffing bit, time being wasted is another big issue. This can come down to too many breaks, not enough work to do, using social media during work hours — there are so many things that can be trimmed away, and will reveal the true worth ethic of your best employees, not to mention save you a couple bucks.
Office space. Where you choose to set up shop is also a big contributor to uncontrollable money spending. Are you utilizing every square inch? If not, maybe a downsize is needed. Some businesses don’t even have an office space, and work remotely, however, if an office space is needed, be sure it fits you and your company’s needs like a glove.
Small purchases. These are the things that can slip by unnoticed when doing a budget balance or any other budgeting type spreadsheet, because it’s easy to swipe a company card for things like supplies, snacks, emergency funds, or even a quick dinner while traveling for the job. If you lose the receipts, then it’s game over. If you find your business spending more money than they should, then take a peek at the small purchases, because you might just find the problem.
These aren’t all the things that we think could be helpful nudges in the right direction, but they are a good start!