5 Money Pits Your Business Needs to Avoid
If you’re a business owner, it’ll come as no great surprise to you that many companies can often find it difficult to maintain a high level of cash flow. The money may be rolling in, but it’s rolling just as fast, and it often means that you can’t grow quite as fast as you’d like to. But while there’ll always be big expenses to contend with, there are some others that you DON’T have to contend with, but probably do. These are the ‘business money pits,’ and if you’re finding that you never have quite as much cash to hand as you’d like, then you be throwing your money into one of them. Let’s take a look.
It seems almost a fair that a new employee should have such a huge impact on a company. You never quite know what kind of worker your new staff member is going to be until they’re settled in. But the costs of hiring a wrong employee can be huge; for starters, they’ll be holding back your profits. And if you have to replace them because they’re not good enough, then you’ll have another round of hiring expenses – which aren’t insignificant. Do your best to develop a robust hiring process, and you should stay on the right path.
No-one’s going to suggest that your business doesn’t need technology; it most definitely does! However, it’s possible that it doesn’t need quite as much as you have. Computers aren’t cheap, after all, and neither is the electricity it takes to use them. Instead of putting a computer on every desk, think about how many you’ll actually use – it could save thousands. Your printing may also be costing you more than it should; have Complete Document Solutions manage your printing needs, and you could make significant savings. Remember: technology is essential for moving your company forward, but it shouldn’t be making a massive dent in your budget.
There’s a certain level of prestige that’s attached to having a beautiful, spacious office in a downtown location. But prestige shouldn’t be something that you fake, or at least especially not if it costs you a lot of money. If you’re paying high rental fees when you don’t really need them, then move somewhere more affordable – you can always scale back up once you’ve got some more money in the bank.
Make no mistake: you need to be spending plenty of cash on your marketing, but it’s important that you spend it in the correct ways. There’s no clear-cut correct approach; it’s about monitoring your marketing campaigns closely, and checking what works. Print advertising, for example, would be a disaster for some industries, but still effective for others. Find out what works for your company.
What you do need is a cost-effective tool that you can manage campaigns and see real-time stats on what’s working and what isn’t. Digital signage software can allow you to monitor your current adverts without costing you a fortune.
Growing Too Big, Too Fast
Growth is good, but not if it happens too quickly. If you’re growing too quickly, then your finances might not be able to keep up. Before expanding, make sure you talk it through with your accountant to check it’s the right thing to do.
Need an accountant? Accountants East London has got you covered.