In some cases, businesses fail because the market changed, they weren’t able to meet sales objectives, or they simply didn’t have a good product. But in some cases, it was simply because of poor money management. The worst in these cases is that it sometimes takes only a few minor adjustments for a business to stay afloat, or to go from stagnation to striving. However, you still have to know where you’re wasting money if you want to correct the situation. Here are a few ways that you can stop money leaks within your organisation.
Stop Overpaying for Energy
Energy costs count for a large portion of your overheads, and you have to see where you may be wasting energy and money. For instance, doing something as simple as unplugging idle devices could save your business as much as 15% on your electricity bills. Another thing you could do is renegotiate deals with your current electricity company.
The first thing you should do is look around and see if you can get a better deal. You could use a tool like Utility Bidder to compare energy rates for business between different providers. This will give you a clearer image of how much you could save and consider making a move if your current provider isn’t willing to cut prices.
Cut on Rent
You should also reconsider your space needs. Do you really need to rent an office space? Some people fall in love with the idea of having their own office, but if you can work from anywhere, then you should consider the option of going office-less. You could consider options like hotel conference rooms, for instance, for important meetings. If you absolutely need your own space, consider downsizing.
Phone and Internet
This is an expense that is often overlooked and where you could make some savings easily. The first thing you should do is bundle your services and go for a Voip phone. Voip is the most convenient phone service you can find and uses the internet instead of a phone line to transfer calls. Not only will you be able to ditch your phone provider, but you’ll get additional perks like text transcripts of calls and voice messages, teleconferencing, and be able to use your main office’s phone number from wherever you are.
Employees and Onboarding
Another area where a lot of businesses end up losing money is when it comes to hiring and onboarding employees. And in many cases, they might think they’re actually doing a good job. But making sure that you provide your employees with the best environment and the right formation will increase retention rates. Not only will you not have to spend to constantly train and hire people, but you’ll have a more experienced and productive workforce as well.
All these money leaks can be easily plugged as long as you’re committed to turn your business’s finances around. Make sure that you always take a cold hard look at your expenses, and always look for areas where you can limit or eliminate costs.