ENTREPRENEURSHIP / JUL. 21, 2016
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3 Ways Your Business May Be Wasting Money

Is your business wasting money? The answer to that question is probably yes but what exactly can you do about that? Read on and find out for yourself.

Running your own business can be the ultimate career move, but let’s face it: it’s not easy heading up a company. One area in which you might be making mistakes is money management. If you're not careful, your firm could end up wasting a small fortune - and this will eat into your profits and potentially jeopardise your chances of achieving long-term success. To help you identify any areas of concern, here are three ways your business may be squandering money.

1. Not Getting the Best Deal on Your Energy

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Energy bills are likely to be among your company’s most significant expenses, so if you don’t have a competitive deal from your current supplier, it’s time to make some changes. For example, if you rely on LPG, and you haven't shopped around, chances are you’re paying too much. A simple internet search could yield surprising results, and making the switch to a new supplier may be easier and quicker than you think.

Meanwhile, if you use oil to power your business, you might benefit from switching to LPG. According to energy experts Flogas, transitioning from oil to LPG can bring cost savings of up to 40%. So, even if you’re busy, it’s well worth setting aside a little time to investigate your options when it comes to powering your company.

2. Paying Too Much for Your Premises

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Many firms make the mistake of shelling out more than they need to for their premises. From buying or renting buildings that are too large to choosing places in premium locations, there are various ways to waste money. If you currently have extra square footage, and you’re not planning to expand your operations anytime soon, consider moving to a smaller building. Relocating to a less popular postcode where commercial real estate is less expensive could also save you a tidy sum.

3. Wasting Resources

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It’s surprising how wasteful some businesses are. Whether it’s purchasing too many supplies, failing to insulate their premises properly, running equipment inefficiently, racking up unnecessary business miles, or simply printing too many documents, companies can waste a serious amount of cash over the course of a year. By cracking down on wasteful practices and making sure your premises and equipment are as energy efficient as possible, you can bring your spending down.

Keeping your spending in check is likely to be a constant challenge for your company, but as long as you’re aware of potential areas of waste like these, you should be able to control your costs much more effectively.

Do you think that any of these tips could help you save money? Let us know in the comments section below...

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