Every company big or small looks for ways and means of saving money. This is especially true in the case of start-ups and small businesses that don’t have excessive amounts of cash flow on hand. There are a number of ways small business owners tend to waste money. In this article, we take a look at some of the common ones. Looking at these aspects can help you make changes and save your business for some money over the long term:
#1 Poor advertising
It isn’t uncommon for small business owners to deal with the tidal wave of people trying to sell advertising space. While there are a number of avenues both digital as well as traditional to advertise and market your products, it’s important to conduct a certain amount of research before deciding where you want to advertise. The publisher’s audience needs to match your customer profile. Even when you have made your decision, it’s important that you test whether the advertising service meets your business needs before you make a long-term commitment.
#2 Business space
This is probably one of the commonest, and biggest money wasters for small businesses and startups. Even the most supposedly savvy business people & business novices tend to overspend on buildings, lease, fixtures, leasehold improvements etc.
#3 Customized websites
We live in a digital age which makes it very important for every business to have a website. You can reduce costs by opting for a template-based website rather than a customized one. While it won’t have the extensive functionality that the latter has, it can serve your purpose at the outset. You always have the option to get a custom website once you have expanded your business and have more cash flow on hand.
#4 Outsourcing front-end development
If you are a young startup outsourcing your front-end development or developing your business plan, that is just a waste of time and money. This is because your investors will only need a one-page business plan when they are vetting your company.
#5 Marketing, advertising, and public relations
As a startup, you want to get news of your presence out in the market. But hiring an advertising, marketing, PR firm that does not provide measurable results can be one of the biggest money wasters.
#6 Overstaffing
Many entrepreneurs tend to waste money on overstocking. If you are the owner of a new business, you need to find ways and means of getting your staff to multitask, without compromising quality. When you have a heavier workload you have the option to hire freelancers or temporary staff.
#7 Investing excessively in PPC
Every business owner today knows how important search engine optimisation is. However, they also know that SEO is a long-term marketing technique. It’s why they invest in other digital marketing strategies like pay-per-click. While PPC is a great strategy that brings in quick results, it needs to be managed correctly. You’ll find you are wasting a lot of money if you don’t outsource it.
The other major money wasters in a business are legal fees, huge quantities of brand collateral, as well as unnecessary infrastructure. It’s important that you make good decisions when it comes to spending money because you don’t have the cushion that well-established companies do.
For effective and sustainable cost reduction methods & efficiencies that will increase your bottom line, contact the experts at Benchmark Cost Solutions at this number – 02 9525 0777. If you prefer, write to us at this email address, and we will revert quickly.
Thanks for reading,
Benchmark Cost Solutions Team
02 9525 0777
