Running a successful business often depends on making difficult decisions. And with the end of the financial year almost upon us, reviewing your budget and working out where you can cut expenses is timely – just don’t expect it to be easy.
Kyle Clarke, Director at Start Grow Run says, “The biggest money waster in any business is poor decisions. Small businesses and entrepreneurs need to make good decisions the first time, as there isn’t often a second chance. Without the luxury of time and capital enjoyed by many of the larger organisations, small business owners have more to lose and put simply, can’t afford the price of getting it wrong.”
Many business owners think that successful business management comes down to doing everything personally. SGR tip: to save time and money, understand your strengths, know your weaknesses and focus on your core competency. Outsource the jobs you know you cannot do or have no experience in delivering.
One of the biggest money wasters for small businesses relates to human resources. The amount of time, money and effort that goes into hiring a person and training them is tremendous. SGR tip: Hiring the right person with the right skills and right attitude for the position is essential to minimising wastage.
Clarke says, “If you’re thinking about upgrading your office equipment (or any business equipment for that matter), it’s important to understand and get advice on what is a tax deduction now versus what is a deferred tax entitlement. The difference could save you thousands in tax!”
Entrepreneurs often think they should pay someone to help with Search Engine Optimisation (SEO). SGR tip: Providing good solid products/services, great content on your website and blog and managing the free social media outlets in a professional way will get you ranked on the search engines just as quickly.
Advertisements that look beautiful but have little to no chance of providing a return on investment are a waste of time and money. SGR tip: There are a lot of interesting ways to spend advertising dollars, but very few that will actually pay for themselves with customers. Measure response rates and know your margin on each and every product and service.
If employees are spending a lot of time chatting or checking Facebook, or re-folding the same jacket every few minutes, they are receiving money for nothing, and that is only going to bring the business down. SGR tip: All businesses need to take a hands-on approach with employees and train them to use their time efficiently, so that their efforts provide an effective return on investment.
For further information on achieving sustainable business growth and reducing wastage, get in touch with Start Grow Run today.
