Running a business is – well – risky business. SME’s are constantly being hit with increasing costs and unforeseen expenses, so owners must look for ways to improve processes and their bottom line. These are the most common financially draining mistakes in small businesses, and ways to avoid them.
Inefficient processes
Are things taking a lot longer than they should, or are you paying a full salary for a job that can be done by a computer in half the time? Once you identify what the problems are, you can implement solutions. Chances are you know that there are inefficiencies but you have been too busy to deal with them. A few hours each month looking for ways to improve systems will not be wasted and you will soon see your profits grow as a result.
It’s 2017 and we have moved from antiquated practices. There are a number of software programmes that can cut costs by saving your valuable time, or that of a paid employee.
CashManager Accounting Software is designed to simplify your accounting. What may take hours each week in data entry and reconciliation, can be condensed into a short ten minutes.
All businesses should be taking advantage of automated and scheduling programmes for tedious and time-consuming tasks.
Ignoring your reputation
How many times have you used TripAdvisor before making an informed decision about where you should stay or eat? Customers rely on the opinions of others before they use a product or service. A positive catalogue of reviews is one of the strongest marketing tools a business can have so it’s important to keep it maintained.
If you’re not already, businesses should be on social media and more importantly, active. Consumers use these platforms to lodge public complaints along with positive reviews. If you are not offering a prompt response and solution to the problem, you are missing out on the crucial opportunity of resolution and creating a positive image.
Poor staffing
Last week, I mentioned the importance of good staff to increase efficiency in the workplace. They are also fundamental for keeping your business in the black. Good staff go beyond a company's reputation to encourage returning customers, but also save the business thousands in the recruitment process. Employees are a product of their management, and productivity and capability is a reflection of the time invested in their orientation and ongoing training. Fulfilled and valued staff will be more motivated in personal success, and that of the company. This will create a more efficient workforce and increase tenure. What may seem like an expensive investment will pay dividends. Your business will save thousands in recruitment, and it will keep the company culture stable.
Unnecessary overheads
You do not have to run your business from a local commercial premise. Office rentals are expensive so if you do not require the space, prime location and staff onsite, there are cost effective alternatives.
If the work can be done just as efficiently from a remote location or shared working space, do not waste money on office rentals. Fortunately, technology has made it easy for us to connect from all over the world and safely share files in cloud storage. This means you can take advantage of remote staffing and freelancers without footing the expensive overheads.
It’s not only the monthly lease you will be saving on; operating your business from home, offshore or co working spaces will save you money on insurance, utilities and business taxes.