Money leaks are often small amounts of money leaving your business when they do not need too. Unfortunately, while individually they cause limited disruption this can build into something larger. Even if you think you’re in tip top shape it is always good to monitor and examine these leaks to ensure you and your business are making the most amount of money possible. Most of these leaks are easy to plug but are likely to require some time to change and implement. Despite this with the boost to your profit you will be glad you did it.
1. ONLINE ADVERTISING
Online advertising fees always seem cheap initially. However, thanks to pay-per-click this cost can increase quickly if left unchecked. Make sure you are seeing a ROI, if it is early on have a good idea what you would like this to be. Keep an eye on your various advertising platforms and trim down any not performing the way you want. After all you do not advertise for fun you do it to get more customers and if this method isn’t doing so what is the point?
Free trails love to get us in for a month or so. But like you I have fallen pray to this and ended up spending a fortune on a service I don’t need. (I still pay for Nintendo online which is roughly £3 a month. But you have to call them to cancel your subscription, so I still spend it every month ). Another key reason for subscription costing you money is do you actually use it? If you have a software such as Canva for when you was making all graphics yourself but you have grown and now use a professional is this still a worth investment? A fiver here and there quickly becomes £20 pounds a month which is £240 a year on things that no longer add value.
3. POWER USAGE
On top of the potentially to help save the planet power waste is an thing to avoid. Turn lights off at the end of the day, turn of unnecessary equipment. Simple habits that have a big impact of your helps support your staff to do so as well. If you and your staff don’t want the extra effort timer switches or even smart timer switches, if your feeling fancy, are an excellent option.
Another way of cutting down is ensuring your getting good value on your bills. There are many brokers and business only providers that help ensure you traffic is both future proof and affordable. Extra insulation, even something as simple as blinds, can help as well as energy efficient lightbulbs. While these can be costly initially the pay off on your bottom line is well worth it.
4. OFFICE SUPPLIES
Anyone who has networked with my mum (Sharon/ our Founder) will have probably heard “don’t keep your profit in the stationary cupboard”. This essentially means do not waste you valuable money on office supplies you don’t need. This is even more relevant today in the world of technology.
5. CREDIT CARD FEES
Letting you credit card bills pile up is ill advised for anyone but even more so for your business. Now of course this is sometimes unavoidable but often there are options to help. Get into the habit of clearing the debt each month even if you don’t actually have too! If you can’t do this know the rules for you credit card company as well as your own. Know where they try to get you and know where hidden fees can pop up. Knowledge is power when dealing with these people.
Choose your credit card wisely and ensure it fits the way you wish to use it not just that it was recommended by a friend. Reward are great short term but the actually structure of the credit is more important than a fancy new toaster!
While not relevant for all if you deal in multicurrency’s check both your conversion rate and any associated bank charges. They can take a fortune from you most of which could be salvaged.
6. SMARTPHONE BILLS
Smartphones are expensive and while its tempting to stick with the same provider it is often not the best deal. Review your bill regularly and when it comes time for renewals make sure you shop around. Sometimes waiting for better plans is better than go with a dud. Especially because deals for these things come around very often. Make sure all phones are used and cancel any spares, getting a new contract is easy replacing money less so.
IT PAYS TO PLUG
By examining your leaks and making adequate adjustments you could save yourself and your business a small fortune.
What could you do with an extra couple of hundred a month?
Regular checks are vital to ensure you are not over budget at the very least but also to ensure you are getting good value for money.