Want to start maximizing your business profits and work in a more efficient way? Cutting expenses is the best way to improve your bottom line, reduce your cost of sale, and increase your earning potential. And the good news is, there are a few obvious contenders for the title of ‘biggest waste of money in small business’. We’re going to look at several of the most common money drains, and reveal how you can plug them up and enjoy a better financial footing.
Update your tech
First of all, if you are using outdated systems and technology, it’s time to invest in something a little more cutting-edge. It will provide you with plenty of benefits. Moving your databases to the cloud, for example, will enable you to scale up and down at will. Investing in newer computers will help your employees work more efficiently. And updating your systems and software regularly will ensure you are safer from the threats – and costs – of cybercrime.
Employee turnover
Most businesses who have a high staff turnover are unsustainable. It costs more money to find, interview, and train new employees than it does to have a consistent workforce. It’s just money down the drain, that is entirely unnecessary. Make sure you are paying more attention to your hiring process for a start, and choosing the right candidates. Give your employees more thorough training so they feel comfortable and confident with their duties. And offer them competitive packages to ensure they stick around longer.
Audits
You can’t tell where you are leaking money if you don’t make regular checks. While the auditing process can be time-consuming at first, the quicker you include it in your organization, the better. And leave no stone unturned. Even a telecom audit can help you save a lot of money. For example, did you know that up to 80% of all telecom bills have errors? While it might seem like small change on a weekly basis, by the end of the year, it’s a significant sum. And if you are auditing every area of your business, in the same way, you can see how much you could save.
Better customer service
Unhappy customers tend to be vocal about their experiences – while happy customers remain quiet. It creates a big problem for your business, as poor customer service can lead to losing up to fifteen customers from a single incident. As a small business, you cannot afford to lose that potential – and it will take hundreds of happy customers to cancel it out. Make sure you are giving perfect service every time, and always seek to resolve any client issue quickly.
Follow-up
Following up on your conversations with everyone, whether prospect or customer, will save you money. Put simply, if you don’t follow up, you will lose out on potential deals, let disappointment linger, and miss out on subsequent sales. It’s not hard to put a simple follow up system in place, and it will help you improve your bottom line by a significant amount.
