5 Little-Known Ways Businesses Waste Money
Companies / SME Jul 09, 2021 - 11:22 AM GMTBy: Boris_Dzhingarov
Most companies are often so focused on making money that they forget about the importance of saving it.
If you’re struggling with a small profit margin, you may need to make various cutbacks to improve your company’s financial security.
Poor cash flow management can result in many organisations closing for good. Don’t follow in their footsteps by learning about the five little-known ways businesses waste money.
1. Unnecessary Water Consumption
Many businesses of all sizes are unnecessarily wasting water each day.
While you might believe your water bill is part and parcel of your operations, there are ways you can scale back your consumption and decrease your monthly bill.
For example, Utility Bidder can perform a business water audit of your premises to identify your consumption levels and offer advice for lowering usage and reducing your bill.
It can help your business save money and run a greener operation.
2. Excess Inventory
Many entrepreneurs make the mistake of bulk buying items to secure a lower unit price. However, the tactic might cost your business more money in the future.
If you cannot sell all the stock at its original price, you might need to launch a sale to sell off the items and increase your revenue.
As a result, you will lose the saving you made, which could impact your company’s financial security.
3. Failing to Monitor Marketing ROI
Marketing costs can quickly spiral out of control if left unsupervised. For example, cost-per-click (CPC) campaigns can quickly build up to a large lump sum, and paid social media campaigns can mount up each month.
If the marketing strategy doesn’t provide a much bigger return on investment, you must abandon the campaign to avoid wasting time and money.
You can then focus on running revenue-generating ads that will increase your company’s profitability.
4. Wasting Supplies
Every penny matters when running a small or large company. However, many organisations are guilty of wasting essential supplies.
For example, paper waste might be a major problem across your business, which will drain your profit margin and impact the environment.
Right, this wrong by encouraging your employees to avoid using hard copies in the workplace.
Aim to run a paperless office and encourage staff to send online documents to one another instead.
If your team needs to use a printer, ensure the printer or copier uses less ink and makes two-sided copies.
Also, request your employees recycle or reuse paper as much as possible to save money on supplies and run an environmentally friendly brand.
5. Overpaying Insurance Coverage
Most brands will need to invest in different types of insurance options for financial protection, such as product liability, public liability, and employer’s liability insurance.
It is, however, essential that business owners periodically review their coverage to ensure they don’t pay a penny more than necessary.
By Boris Dzhingarov
© 2021 Copyright Boris Dzhingarov - All Rights Reserved
Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors.
© 2005-2022 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.
