No small business owner is perfect when it comes to money management. Many are experts at maintaining a tight budget and only choosing the most sensible investments but it’s simply impossible to make sure a completely appropriate amount of money is being directed towards every single element of a business. There is always something the business owner could have obtained for less money or utilized more efficiently to make up for the cost.
A select few of these financial mistakes apply to nearly all businesses, regardless of their industry. This is because, in the case of these investments, the only way to guarantee a solid ROI (return on investment) is to dedicate a considerable amount of time to making sure your money is being spent wisely. Time, however, costs money, which suggests the need for additional business funding in order to prevent operations from slowing down when your attention is elsewhere.
FIXING THE WEAKEST LINK
The backbone of every business is its team. Most business owners are well-aware of this fact but unfortunately cannot afford to assemble a group of workers with little to no flaws. This brings us to the most obvious waste of money for any small business: under-performing employees. An under-performing employee is best defined as someone who contributes so below par that your company no longer sees the point in setting ambitious goals. The more time your company needs to complete a task, the more money it costs to run.
Larger companies won’t suffer because of a couple of under-performing employees but smaller companies depend on every employee to fulfill his or her responsibilities properly and on time. Smaller companies cannot move forward even if just one employee is not being productive enough to surpass the cost of being hired. For some small companies, every employee must go beyond the bare minimum as opposed to only working during the hours he or she is being paid for.
SPOTLIGHT ON THE UNKNOWN
The mark of an underachiever is indisputable but it’s also possible for a company to waste money on employees without even knowing it. The skills employees utilize at work are not their only skills. Everyone has more they can bring to the table. Business owners are typically unaware of their employees’ full potential and therefore end up preventing productivity from increasing as much as it possibly could be. This is a waste of money because such employees tend to be so overqualified that they finish their work quickly and with ease, only to spend the rest of the day bored out of their minds.
Business owners examine the resumes of candidates but won’t realize how applicable their other skills are until they actually talk to them about their backgrounds. A leisurely conversation with an employee about previous jobs could reveal a skill set that is essential for the new service your business is thinking of offering.
The employees you’re looking for are out there, you just have to invest in finding them. Working capital loan companies like United Capital Source have helped countless businesses take their time with the hiring process without slowing down operations. These businesses marketed to their desired candidates and were able to be very selective because they didn’t have to worry about their business losing money for every week they went without making a decision. Refusing to invest in finding the right employees is a recipe for bigger costs and lower revenue, so it only makes sense to ensure your business meets the most important requirement for success: a no-nonsense team.
THERE’S NO PLACE LIKE HOME
Another problem that can be solved by new hires is the high cost of outsourcing projects. Small businesses have a habit of spending tens of thousands of dollars on outsourced projects even though the project is ongoing or recurring. A much more cost-effective option would be hiring a new staff member or team to handle the duties, which would be completed with far more proficiency now that the individual or team doesn’t have to split time between multiple clients. Outsourced projects can involve bookkeeping, website development and – one of the most common ways businesses are wasting money today – careless digital marketing initiatives.
It’s common for companies to unknowingly not get their money’s worth after investing in digital marketing. Some companies will invest in social media advertising without thinking to collect their followers email addresses so they can send them exclusive offers and communicate directly. Other companies will buy ad space on Google AdWords without bothering to research which ads are working for different demographics. Digital marketing is supposed to not only increase your online presence but also let you see how effective certain ad campaigns are in terms of driving leads and sales. Ad campaigns need to be constantly modified all throughout the year, which is why more and more companies are bringing digital marketing in-house. This crucial investment will give you the accessibility and strategic targeting that has now become necessary for maintaining relevance.
SAYING GOODBYE TO ILL-FATED INVESTMENTS FOR GOOD
Any business owner understands the validity of the timeless saying, “ You’ve got to spend money to make money,” but only the most successful of the pack is well-aware that you’ve got to spend money to prevent wasting money as well. Take comfort in the fact that the money you’re spending doesn’t have to come from your own funds. The business funding experts at United Capital Source know have given businesses in dozens of industries the time and energy they need to build reliable and diverse teams. If you are wasting money on under-performing employees and outsourced projects, call 855.933.8638 or visit the UCS website. You’ll be surprised as to how much easier it is to grow your business when you aren’t worried about paying your bills at the end of the month!