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wasting-money

How to Stop Your Business From Wasting Money

Spending money is inevitable for small businesses (and everybody else on this planet). But what to spend your hard-earned cash on is a difficult choice.

 

Most small businesses, especially those in the startup phase, have a hard time figuring out what to pay for, and how much to spend. This often results in overspending, and unnecessary purchases taking up space in your office (and wallet).

 

Here are some of the most common spending errors small businesses encounter.

 
 

Inaccurate Accounting

 

Accounting is not something you do once a year during tax season. You need to update your books regularly. That is, every time you spend or make money.

 

If you don’t, you risk losing count of your business’ financial situation, which is a major problem. You need to be aware of how much cash your business has at any given moment to remain solvent.

 

Since cash flow problems are among the major causes of small business failure, you need to ensure that you always have enough cash to pay the bills.

 

Before you envision yourself hunched over big ledgers, take a look at our blog The 5 Best Pieces of Accounting Software for Your Small Business. Yes, accounting is a lot more convenient these days than it used to be.

 

Since cash flow problems are among the major causes of small business failure, you need to ensure that you always have enough cash to pay the bills.

 
 

Bad Marketing Choices

 

When you’re just starting out, it’s hard to know how to reach your target audience right away (It gets a bit easier later on. A bit.).

 

There are many marketing companies preying on inexperienced small businesses, overwhelming them with “the best” and “the greatest” marketing services.

 

Before jumping at the first (or loudest) offer, do your research. The most important question you need to ask is: does this service provider cover my target market?

 

Even the best marketing campaign is a waste of money if it doesn’t reach your target audience.

 

Even the best marketing campaign is a waste of money if it doesn’t reach your target audience. For example, if you’re selling children’s shoes, you don’t need to spend cash on ad space in The Wall Street Journal.

 

If you order a marketing service, make sure there’s a tracking option in all ads. You need to know exactly what works and what doesn’t.

 
 

Lack of Digital Presence

 

The internet is a gold mine for marketing. If you don’t have a strong online presence, including a website, blog, and social media profiles, you could be losing a lot of sales opportunities and money.

 

This doesn’t mean you have to sell your products online as well, although ecommerce is booming and a great opportunity for small businesses.

 

Make sure your business is listed by Google. It’s completely free, and it’s a must if you want potential customers who search businesses with your keywords in your vicinity to find you.

 

Even offline companies need a digital presence to advertise their products, and to provide a space for customer interactions.

 

You need to be found.

 

Make sure your business is listed by Google. It’s completely free, and it’s a must if you want potential customers who search businesses with your keywords in your vicinity to find you.

 

For other useful digital marketing tips, read our blog Top 5 Online Marketing Tools for Small Businesses.

 
 

Human Resources

 

Unless you’re a sole proprietor, you need employees. But should you hire them yourself, or outsource various business tasks?

 

There’s no right answer. It depends on your exact needs, and which ultimately makes more sense.

 

Never outsource your core business tasks, and never give sensitive data to contractors.

 

Take a close look at your business, the tasks in question, and your budget. If the tasks are inessential and periodic, it may be best to outsource. As a bonus, this helps you save office space, equipment, and overhead costs as well.

 

However, never outsource your core business tasks, and never give sensitive data to contractors.

 

For tips on how to get started with outsourcing, check out How to Find, Train, and Manage Offshore Workers.

 
 

Lack of Automation

 

Doing all business tasks manually is a waste of time. There are many platforms (accounting, customer relations management, supply chain, etc) designed to make your life easier. Review your needs and pick the ones that will help your business grow.

 

However, some of these can be quite expensive, and may not be the best choice for your business needs. Make sure you check the price tag and real value before you commit yourself.

 

Luckily, there are business areas, like global payments, where you don’t have this problem.

 

Try Veem.

 

A Veem membership is free and doesn’t come with time-commitment. With Veem, you can send and request international payments with just a click, as many and for as long as you like.

 

Veem saves you money and time, since it charges no wire fees, offers competitive foreign exchange rates, and allows you to track all transactions.


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