You wouldn’t set fire to the money you store in your safe. You wouldn’t fritter away your savings on expensive works of art for your office walls, or on expensive office lunches. You would only be wasting the money that could be better spent elsewhere.
However, you could still be wasting money in other ways.
#1: You might be wasting money on your outsourcing
There’s nothing with outsourcing, of course. In fact, it makes perfect business sense if you don’t have qualified people on your team to take on certain tasks that need to be completed. However, if you are outsourcing these tasks on a too-regular occurrence, it might be a good idea to hire new staff members on a part or full-time basis to take them on for you. In the long-term, this could be the cheaper option. On the other hand, you could train up current members of your team to take on these tasks, or even attend training courses yourself, as you wouldn’t then have to spend a huge portion of your business contracting them out to others. Do the maths and consider the possibility for your business.
#2: You could be wasting money on your company vehicles
Many businesses are dependant on their company vehicles. It could be a car that is used to get from A to B when attending business meetings. Or it could be a van that is used for deliveries. And while there is nothing wrong with owning such vehicles, think about the money you could be wasting.
So, if you have a rickety old van that is in constant need of repairs, for example, it might be more cost-effective for you to use TraderVan or similar to replace your ailing vehicle. Not only will you save money on your repair bills this way, but with a newer model van, you would probably save money on fuel too, as it might be built with greener technology.
And if you have to attend a lot of business meetings, consider two things. Firstly, do you need to leave your office? Using Skype or some other video-conferencing software for your meetings, you wouldn’t have to get into your company car at all. And secondly, when you do attend meetings, do you use a route planner? With a satnav or an app on your phone, you might be able to get from A to B quicker and at a shorter distance than you usually do. It will work out cheaper for your business if you invest in something, as you will then save money on fuel.
#3: You might be wasting money on marketing
Is marketing ever a waste of money? People do need to hear about your business, after all. Well, our answer is ‘yes,’ because you might be targetting demographics who are unlikely to use your business. You might also be using marketing strategies that aren’t befitting of your target audience. So, if your marketing efforts aren’t pulling in many new customers, you need to ask yourself why. Use the following linked tips to measure your marketing effectiveness, and if you need to alter your strategies, then do so.
So, are you wasting money within your business? Other than that Picasso you have just bought for your office, there could be other ways in which you are squandering your reserves. Think about it, and then make the necessary changes so you can save instead of waste money.