Is Your Small Business Wasting Money?

These bad habits can add up to big expenses

These bad habits can add up to big expenses

No business can afford to waste money, especially a small business with limited resources. Yet you’d be surprised at how many small businesses do just that — in subtle, hidden ways. To minimize your expenses, watch out for these common money wasters:

  • Advertising without a plan. Running a single ad or sending out one direct mailer usually doesn’t work. Instead, create an ongoing marketing plan to establish budgets and keep your business name visible all year long.

  • Stocking up on supplies. Buying things like office supplies in bulk may get you a good price. Unfortunately, your cash will also be tied up in these products while they’re sitting in storage or becoming outdated.

  • Maintaining vendor loyalty. It’s important to build lasting relationships with vendors you trust. But keep them on their toes by getting competitive quotes occasionally. Otherwise, you may end up paying more than you should.

  • Mistreating employees. Your staff is just as important as your customer base. Never forget that it’s cheaper to keep employees than it is to hire and train new ones. Good pay and competitive benefits go a long way toward keeping workers happy.

  • Failing to invoice. Believe it or not, many small businesses forget to invoice work from time to time. When they remember, they may feel it’s too late. Set a time, whether it’s monthly or weekly, to get those invoices out so you can keep money rolling back in.

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