Money leaks in your small business eat away at your profits without you even knowing about it. It’s good practice to check for leaks regularly to ensure that you’re not wasting money. Plugging money leaks will reduce your spending. This in turn will boost your profit margins without too much extra work on your part. Here are some common money leaks to look out for, and how to fix them.
1. Online Advertising
It’s easy to let advertising fees get out of hand. Social media pay-per-click fees may seem small. But they do add up and can present a significant cost for your small business. Keep a close eye on any social media or Google advertising campaigns to ensure that you’re not running up a big bill. It’s also important that you review the effectiveness of these adverts. If they’re not bringing in business, they’re a wasted expense.
We’ve all signed up for a free trial with no intention to continue, then forgotten all about it and ended up paying. Other times, we stop using a service but forget to cancel the subscription. It’s all too easy to let your business leak money this way, but it all adds up. Review your subscriptions and promptly cancel any that are no longer benefiting you.
3. Power Usage
Leaving the lights on overnight and forgetting to switch off devices may not seem like a big deal. But over time they can eat into your profit margins. It’s important to get into good energy-saving habits and encourage your staff to do the same.
There are other ways to cut down on electricity usage. Insulated blinds or switching to energy-efficient lightbulbs present an upfront cost. But they will save your business a significant amount of money in the long term.
4. Office Supplies
It’s easy to go over the top with office supplies, so take some time to assess what is and isn’t necessary. Multicoloured sticky notes are fun, but they’re hardly a necessary expense. Many businesses waste a lot of money on printing. But this is avoidable in the age of cloud-based software.
5. Credit Card Fees
Being lax with your credit card payments is a surefire way to create unnecessary costs. Clear your balance each month as far as possible. And pay attention to any annual or hidden fees. This way you can save your business money and boost your profit margins.
When signing up for a credit card, don’t get distracted by the attractive rewards. Make sure that you read the fine print and understand the fees before you choose a card. This will help you to use your card wisely and avoid any money leaks.
6. Smartphone Bills
If you’re not keeping a close eye on your smartphone bills, you could be paying a lot more than necessary. Review your charges every month to ensure that you and your staff aren’t exceeding your plans. Take a close look at your usage, too, because you could be paying for more than you’re actually using. Shop around too to see whether you could benefit from switching plans or providers.
It Pays to Plug
By plugging these common money leaks, you can cut down on costs without making any real sacrifices. And checking for leaks will help you make your budget go further. So make sure you don’t grow complacent. Perform these basic checks to maintain a healthy profit margin and prevent your business from losing money.