Money Saving Ideas for Your Small Business
You Could Save Your Business Money by Avoiding These Mistakes
You’re in business to make money, not loose money. We’ll leave the first part to you, but to stop loosing money, give these tips a read!
There are several ways businesses waste money and we’ve many Australians to reduce the impact on their businesses. From our experience, we’ve come across three commonly overlooked ways our clients have been wasting money so we’ve compiled these money-saving tips to help you loose less, and profit more.
Pay Your Bills on Time
Did you know that one of the best ways to save money is by paying your bills on time? Yes, sometimes you’re too busy running your business to follow due dates precisely. Other times, funds are low, so you may intentionally delay payment.
These late payments will affect your business just as late payments on personal spending would. Your business’s credit score is affected. You rack up late payment fees and you may even find yourself in a spiral of overdue debts. After a while, your suppliers may refuse to sell to you meaning you can no longer sell to your customers.
It’s not easy and sometimes you do have to be lenient, but overall you will save money by paying on time. If you don’t already have a system for tracking your finances and paying bills on time, it may be time to seek help!
Improve Recruitment
Most employers don’t think about the cost of recruiting. We have the mindset that, the sooner we hire for a position, the sooner we can get back to our own work and the more money we can make as a business. However, the opposite is often true. A survey published in Forbes Magazine found that the turnover for an entry-level worker can be anywhere from 30-50% of that employee’s salary. If you hire the wrong candidate, you may have to re-hire again before getting the value your business needs. Plus, your qualified employees spend their time (and your money) training new employees.
So how can you save money in the recruitment process? Always be open to meeting potential candidates even if a position isn’t currently available within your business. Hold on to their details and let them know you might be interested in speaking with them down the track. This can save you time when a position opens up and oftentimes these staff end up staying within the business longer.
If you aren’t lucky enough to find someone organically, we recommend that you take your time when reviewing candidates. Consider all potential candidates carefully before scheduling interviews, and only interview those who truly have the potential to deliver value within your business. If the perfect candidate isn’t there, hold out as long as you can until they are.
Embrace Technology
Technology is key component of running a business with uses ranging from those as simple as your point of sale system to your e-commerce website or even your CRM software. Given all these advantages, we were surprised that so many of our clients are still not embracing technology in their businesses. In fact, approximately 37% of businesses don’t take advantage of technology to improve their workflow and profits.
The most common area where technology can improve your business is with digital payment solutions. These solutions can send invoices and allow your clients to easily make payments online. Solutions like PayPal and BPAY can help you to find unpaid invoices, to ensure you have the influx of cash needed to run your business.
Technology can aid in productivity, helping your staff to complete tasks with less time and greater accuracy. Technology can give your business a whole new way to communicate with customers, helping to resolve issues faster and letting you build your tribe of repeat customers more easily.
For more advice on how to save your business money, get in touch with the Scott Partners team. We can offer advice, help you build a budget or even find the software that will be most helpful for tracking payments for your business.
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