It’s so common for business owners to waste more money than they really need to. But is your business wasting money?
There’s misinformation everywhere, and just because another business has something, you may think this means your business has to have the same thing. FOMO, and all of that. You could be wasting money on all kinds of things, both big and small. Let’s take a look at a few signs that could indicate your business is wasting money, and what you can do about it.
Your Website Doesn’t Make Sales
If you’ve got a website, you need to make sure that it’s professional-looking, well laid out with the user experience in mind, SEO friendly, and more. Yes, there’s a lot to remember. However, having a website doesn’t automatically mean that you’re doing a good job. If your website has never led to a sale, then your business is wasting money.
You need to make sure you’re doing everything you can to create conversions with your website, from a proper SEO strategy to A/B testing.
Don’t forget how important things like content are, too. If your content is poor, then it won’t matter how great your web design is.
You should consider investing in all of these things if you don’t have the time or expertise to do them yourself.
You’re Not Shopping Around For Better Deals
If you’re not shopping around for a better deal then your business is wasting money. You need to see if you can find more cost-effective suppliers, cost-effective freelancers, and other cost-effective things to help your business without compromising on the quality.
Cartridge People have great deals on refurbished toner and printer ink cartridges if you’re looking to save money on quality office supplies, for example. Make sure you explore what’s out there. Don’t forget that building great relationships with other businesses and suppliers can help you in the long run.
Don’t be afraid to barter down either. Whilst this isn’t always possible on products, it may be on services. Maybe you could offer a company one service in exchange for another.
You’re Not Monitoring Properly
You can spend a large portion of your budget on your marketing and that’s fine. But it only makes sense to to do so if it’s really working for you. You only truly know if your marketing is working if you begin to monitor it.
Let’s say you’re using PPC. You need to make sure you’re paying attention to the stats and data so that you know how many people are purchasing through your efforts. You even need to find a way of monitoring offline efforts, such as flyers and brochures.
If you’re spending more money than you’re getting back, it’s time to reassess your plan. Maybe you should find a new professional to help you put together a strategy that really works.
Your Audience Isn’t Engaging
As a business owner, you should have a good idea of who your target audience actually is. Every business has a target audience. This doesn’t mean that only this specific group of people will work with your company, just that they are the people you think of when creating a new product or campaign.
If you’re not engaging these people on social media, or you are aware that they don’t seem to be interested, your business is wasting money on the techniques you’re currently using.
No One Is Reading Your Blog Or Following Your Social Pages
Following on from the previous point, if nobody is reading your blog or following you on your social channels, you’re wasting money. At the very least, you’re wasting your own time. At worst, you’re wasting money paying somebody else to do this for you.
Blogs and social media can be powerful tools for businesses of all sizes, in all industries, so make sure you’re using them to your advantage. What new strategy and approach can you try to ensure people find your blog posts and decide to follow your social pages?
You could develop a new brand voice, for example, and you could host competitions on your social pages.
You’ve Got A Lot Of Debt On Your Plate
Using credit in business is normal. In fact, it’s sensible. Making big purchases via a credit card, for example, will not only protect you, but help you to file your tax returns more easily as your purchases are in one place.
However, too much debt is bad, plain and simple. You must stop using your credit card carelessly, as you’ll be wasting a fortune in interest payments. You could potentially lower your interest payments if you’re willing to negotiate. However, it’s best to be more mindful of when you’re using credit to pay for something.
Your Customer Invoices Aren’t Getting Paid On Time
Studies have shown that if you haven’t had an invoice paid to you for over 90 days, it won’t be paid at all. A measly 18% of invoices only get paid after the 90 day mark. You can’t pay your expenses if you’re not bringing money in!
Using an invoicing system can be the best way to sort this out. You’ll be able to invoice more promptly and frequently than before, encouraging clients to pay sooner. You can also give incentives for fast payment.
You Have No Emergency Fund
Everyone should have an emergency fund. Your next door neighbour, your grandma, and especially business owners. If you don’t have an emergency fund, it’s no wonder you’re taking out too much credit.
If you haven’t already, then there’s a chance you’ll need to take some out without an emergency fund. By creating a reasonable budget and putting money into an emergency fund as often as you can, you should avoid the pitfalls.
You’re Receiving Terrible Financial Advice
Hiring a professional who can keep you up to date with things like tax regulations is great. However, they need to be helping you to make smart financial decisions and keeping you on the straight and narrow.
You need to make sure you’ve found the right person for the job, or you could be following financial advice that just isn’t in your best interests. Use online resources to help you, or ask for recommendations from people that you trust.