Three Places Your Business Could Be Haemorrhaging Money

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In business, making money is the name of the game. You might have started your business for reasons other than money- flexibility, freedom from the rat race and creating something you’re proud of- however when it comes down to it you need to be turning a profit for it to be a success. So, anything that’s losing you money or places you’re overspending need to be fixed- here are three places to address.

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Shutterstock Licensed Photo – By NicoElNino

Outsourcing

There are reasons both for and against outsourcing. In some cases, it can save you money as you’re not having to hire additional staff. It can also save you hassle, as it’s an entire area of your business that you don’t personally have to overlook, as you know the work will be done to the best quality by a professional third-party company. However, in other cases it can be cheaper to keep processes in-house; while there’s more work involved, it could save you money overall and give you more control of your business. Instead of immediately assuming that outsourcing is what’s best for your company, do the research first. In some cases, higher upfront costs and getting established yourself can be cheaper in the long run. Thanks to good business software it’s easier than before to run and maintain areas of your business, many tasks can even be automated so it might not be as big of a job as you’d think. It’s not to say you should avoid outsourcing altogether, but make sure you’re pricing things up and consider both the long and short term. In some cases, it will be the best option, in other cases you’ll be better hiring your own staff.

Employees

When it comes to hiring employees, the temptation is there as a business owner to take on less experienced workers as you’re able to pay them less and save costs overall. However, this is rarely an effective way to save money; minimum wage pay often equates to minimum wage effort. You might pay out less in wages but you’ll pay the price through lower productivity and work that’s not as good as an experienced employee. Advertising, interviewing and training can all be expensive, so it’s in your best interests to get it right first time. Choose employees that are hardworking and motivated and pay them fairly, often based on experience is best. Use an applicant tracking system to make the recruitment process as hassle free as possible. Good employee benefits give them security and a reason to stay with your company, instead of being tempted to search for work elsewhere instead.

Office

When you’re first starting out in business, often you’ll need to choose whatever premises you can afford. You might not have the biggest space in the world, but do what you can to make it pleasant. Spend money having it redecorated and freshened up, and when you can afford to move to better premises then do so. A nice office can lead to better productivity and therefore more profits. It can also give a good impression to clients coming into your office and could be the difference between securing and losing contracts.

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