This can be particularly true for SMEs, where one person is overseeing almost every aspect of the business. You can’t be everywhere at all times, but it does help to be aware of the places where leaks occur most often so that you can take the necessary steps to plug them up.
Some of the more obvious areas prone to leaks are employee salaries, rent, internet and phone service and banking fees. It can be all too easy for a small company to end up paying out too much to employees, but this doesn’t mean you need to start firing people. It could just mean that you need to evaluate how various tasks are being handled and make sure everything is being done more efficiently.
Paying too much in rent seems pretty clear and you may want to rethink that storefront you opted into. Is it necessary or could your business run just as efficiently from home or even with a just a web presence? And speaking of the web, while you certainly need web service and phone service, you can’t afford to overpay for them. Check into your current service terms and see if you can’t find a better deal.
The same can be true for your bank. Bank fees can add up a lot quicker than you’d think and it may be possible to get better rates, either at another financial institution or your current one. You simply need to investigate the available options and then speak with someone at your bank about possibly making changes in order to save you money in unnecessary fees.
Along with these, there are other areas where expenses can add up, including something as simple as paying too much for office supplies or perks, like that morning coffee and doughnuts. Again, see if you can’t cut costs without completely depriving yourself and your employees. Marketing can be another potential money waster…are you sure your current marketing plan makes the best use of your budget? There may be free methods of advertising that you could be taking advantage of to help save money.
How can you possible stay on top of all this? It’s not as difficult as it may seem. It just takes a little extra effort and planning. Having the input of a professional business coach can help as well. Sometimes you need a little outside perspective to help you see the big picture and make the tough decisions that could help your business in the long run.
Don’t let your business go down because it is leaking too much money. Stay on top of your expenses and make sure that you aren’t overspending or spending on things you don’t need. That way you can keep everything ship shape and make sure that your business stays afloat for years to come.