Six Ways Your Business Is Wasting Money And What You Can Change Today

From a financial perspective, businesses are like people. Some handle money efficiently, while others waste money needlessly. If you are a business owner or manager who is concerned about your company's finances, here are six ways your business may be throwing away hard-earned income.

Maintaining services that can be outsourced

Paying a full-time bookkeeper or accountant is expensive when you factor in benefits and vacation days. Outsourcing services like bookkeeping, transcription, and maintenance can often save considerable money.

Not using coupons and discounts for office supplies

Office supply and shipping companies frequently offer coupons and discounts, especially to regular customers. Take advantage of special deals to save money on services like printing and shipping, as well as supplies like printing ink and paper. You can find online coupons for FedEx on sites like Discountrue to save money.

Hiring full-time instead of part-time employees

Many company positions can be handled by part-time rather than full-time employees. Not only will the salary be less, but benefits may be reduced. Of course, you never want to short-change employees who put in a full day's work or needlessly reduce their hours. But when hiring new positions, give some thought as to whether the duties can be handled part-time or full-time.

Not offering internships or volunteer opportunities

Training young, eager students and new graduates how to operate machinery or manage office functions is a great opportunity for on-the-job training. Paid or unpaid internships can provide valuable experience while keeping employee costs low. Similarly, volunteers may want to assist your company in various functions, especially if you sponsor a community activity like Little League or give donations to the needy during the holidays or year-round.

Keeping outdated equipment

If your office or factory equipment is aging, you may be paying more for an extended warranty or repair services than it would cost to buy new equipment. Sometimes newer machines work more efficiently as well, using less electric or employee time for operation. Evaluate your equipment and tools to see if updates might save money.

Failing to maintain or update marketing strategies

A robust marketing program helps to keep the company image fresh in the public eye. It can publicize new products or services, promote discounts or sales events, and remind people of your company's unique features. Devote part of your operating budget to a marketing program.

When you stop wasting money and start spending where it can help your business, you can see dramatic growth begin to take place. Adjust your business budget and turn red bookkeeping ink to black.