Spending money unnecessarily in business might sound like something no one would do – after all, the keyword here is ‘unnecessarily’ and sure no right-thinking business owner would spend out when they didn’t have to?
The truth is, however, that many do just that. They spend money on things they really don’t need to, or they spend too much because they don’t think about the methods they could implement to save them money in the long term.
If you’re concerned you might be doing the same thing and spending money unnecessarily without even realizing it, here are some useful tips to work out what you’re doing and stop if there is a problem.
Advertise All The Time
Advertising all the time sounds terribly expensive; in-depth marketing campaigns are costly, and although they are important, they aren’t something that most businesses – or at least smaller ones and startups – can afford to be doing at all times.
Luckily, this is not what we’re suggesting. This wouldn’t help to save money; it would cost you more. However, you can stop spending quite so much on your primary advertising campaigns if you are always looking out for other advertising opportunities; these are the ones you can use all the time.
Some examples include:
- Having a sign-written vehicle or fleet of vehicles
- Sending out flyers with orders
- Organizing competitions
- Sponsoring local events and charities
These, and many more, will cost a fraction of the price of a major advertising campaign and can be used at all times, saving you money overall.
There will be times when you have to spend money in business; you’ll need to buy supplies, send out packages, carry out marketing, and much more. It’s virtually impossible to run a successful business without spending any money on it.
Yet just because you have to spend money, that doesn’t mean you should be spending unnecessarily, especially when it’s easy to reduce your costs. Instead of just taking the first price offered to you, you should obtain at least three quotes. Compare the quotes carefully, ensuring they are ‘like to like’, and you will be able to make an informed decision about how much you should be spending. This can be done for every element in your business from aircraft cargo to stationery. You never want to pay more than you should, and it pays to take the time to investigate all the costs.
Work From Home
In the past, working from home was not an option that was open to many. It was too difficult since the technology didn’t exist, and what did exist was expensive. Now, however, much of the tech needed for employees to work productively and successfully from home is cheap, even free in some cases. As long as you have good systems in place and everyone understands the rules of what’s needed of them when working from home, this is now a viable and useful idea.
It will also mean you can stop spending money on your premises. With no need for an office, you can give up your lease or sell the space if you own it, and stop spending unnecessarily on rent or a mortgage and utilities.