3 Surprising Ways Small Businesses Waste Money

StrategyDriven Managing Your Finances Article |Managing a Small Business|3 Surprising Ways Small Business Waste MoneyWhen you are new to the business world, mistakes are an unavoidable element of your learning curve. You are still in the process of defining how to become a leader, how to run a company, or simply how to share your business ideas in a way that appeals to investors. Let’s get things straight from the start: Not everything you do will be perfect. It doesn’t have to be; nobody was born a knowledgeable entrepreneur. Mistakes are a stepping stone in building up your experience, and as such, you shouldn’t be afraid of them.

However, while some mistakes can be an opportunity for self-improvement, others can present dramatic risks for your business. Indeed, some errors can be costly. What makes them even worse is that money-wasting mistakes could easily be avoided if you were to work with an expert at your side. Indeed, if there’s one good reason why small business owners shouldn’t multitask, it’s this one: Every mishap caused by lack of knowledge or attention will drag your finances down!

Online marketing campaigns are easy to set and to scr*w up

Digital marketing campaigns are not only a popular strategy to launch your company, but the general feeling you get from a quick search on the Internet is that you can manage them in a few clicks. The truth is slightly different. While digital marketing tools are readily available for all to use and enjoy, it doesn’t mean that digital marketing is simple. On the contrary, unless you master essential digital skills such as web design, social media communication, and PPC, you can’t profit from your activities. You’d be surprised how easy it is to waste money in a poorly managed PPC campaign – we’re talking thousands! Leave those to someone who knows how to make the most of your digital presence.

Keeping on top of your bookkeeping and tax is HARD

Most small business owners choose to keep their books in-house. Unfortunately, unless you’re a trained accountant, your financial reporting might be affected by involuntary discrepancies. Errors of omission, when you accidentally fail to record a transaction, or transposition errors, when you mistyped data, can lead to more dramatic budgeting and tax issues. Additionally, managing financial reports is a specialized and time-demanding activity that is best left to experts such as Brilliant Tax. Entrusting professionals with your bookkeeping frees up valuable time, which you can repurpose on income-generating activities.

You’re wasting too much energy throughout the day

Did you know that commercial buildings account for around 20% of energy consumption in the US? Businesses don’t use a fifth of all the energy in the United States. Heating, cooling, and lighting habits in offices and commercial buildings can lead to vast wastes of energy. Many companies admit to leaving windows open while using the HVAC system, for instance. Others choose to leave the lights on throughout the night, even after the building has been deserted. Simple changes, such as making your staff aware of waste behavior can help to cut down your energy bills at the end of the year.

Small businesses have, by definition, a limited budget. You can’t afford to throw your capital away if you’re trying to build up momentum. Identifying areas of improvements can finance your future success.

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