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Needless Leaking: Where Your Business Is Losing Money
Large businesses hate waste. They see it as yet another area which they need to constantly improve to stay ahead of the competition. For small businesses, it’s more a matter of life and death. Small businesses can collapse when there’s any amount of waste. You need every penny you can get, to help you fund your operations and sometimes, just keep the lights on for another week. It’s not easy running a small business, so anything that simply makes it more difficult is going to decrease your chances of longevity. But it’s not always easy to notice where you’ve sprung a leak from.
The everyday utility
A small business has anywhere between 20 to 200 employees. If you have more than one office it makes it trickier to keep track of your utility usage. As part of your company culture, instill within workers that waste in the office will impact the business negatively. If no one is using a computer, shut it off. If no one is using the meeting room, close the lights. If there are only a few people working in the office while the rest are out on projects, pitch meetings and the like, then don’t use the air conditioning unit. Turn the heating off if it’s just you and a couple of employees working late. Be mindful of the little things and you will become an eco-friendly but financially savvy business.
Money on the table
When large businesses are waiting for payment from anyone who they have done business with, they do not let up. They will chase down anyone they have to, to make sure they meet their bottom line. You should be just as aggressive with your clients. If you have invoices just laying around, that’s money on the table which you aren’t collecting. But it’s common for entrepreneurs to simply not have the time in the day to go around chasing clients. That’s why invoice factoring services are so helpful. They will buy invoices from you, they have confidence that they will be paid. You get a percentage of the invoice upfront in cash. They will start the hunt and make sure, the remaining percent of the invoice is paid to you in full. You’ll get the second payment, minus a fee they take for the trouble.
Unneeded employee food
In a bid to be modern, some entrepreneurs feel they need to provide lunch for their employees. Even though just 20 to 30 people are working for them, they set up a canteen or have fresh food options brought in. This is not something that you should feel obligated to do. Yes, it helps morale but not as much as you’d think. Employees should bring their own lunch if you can give them a map of local coffee shops and fast food restaurants they can go to during their lunch break.
Unpaid invoices should not be piling up in your office. If you can’t do it, send a company out to hunt your clients down and get the payment you deserve. Create a company culture of being eco-friendly and using utilities carefully.
