Starting a business means making mistakes, the trick is to learn from those mistakes. But, making a mistake costs money. A cheaper way to learn from mistakes is to learn from other peoples mistakes. That way, you get all the knowledge without the cost. Besides too many costly mistakes, here are a few other classic small business money wasters.
Small business money wasters
Keeping a tight leash on your budget is important when you are an entrepreneur and starting a business. You can’t be reckless with your budget. Understanding which areas to focus on and which areas are a waste of your time (and money) can save a ton of money. One of the biggest money mistakes made by entrepreneurs is throwing money at unnecessary expenses.
We know you have to spend money to make money, but you have to spend it wisely. Too many entrepreneurs jump the gun on unnecessary things like expensive office space. We know you’re working your way to creating a whole “Google campus,” but when you are just starting out, office space should be at the bottom of your list. You need to focus your money on operations and creating the best product and service. Don’t try to impress a client with a fancy office space if you don’t have the product to back it up because everyone will quickly realize that the emperor has no clothes.
Remote working capabilities
Allowing people to work remotely is an attractive quality in a job these days. You may be able to save a bit of money by making other areas of the job more attractive. Work-life balance, like flexible work hours and working remotely, is sometimes more attractive to qualified employees than a big paycheck.
Hiring a staff is costly, so when you’re just starting out you want to only hire essential personnel. Today, it’s easy to hire qualified people on a project-by-project basis so that you aren’t saddled with the cost of full-time employees right from the start. As your business grows, you can start to add more and more people to the team.
Unnecessary office equipment
Another huge money waster for small businesses is buying unnecessary office equipment. The right technology and the right applications may eliminate a lot of other gear, saving you money.
Working with third-party companies can eliminate some expenses. For example, working with a third party IT company will save you money on an IT department, servers, server space, and other backup equipment. Small businesses shouldn’t be afraid of outsourcing, it will free up time and resources. Having everything in-house is too costly, and if you don’t know what you’re doing you may just be wasting your money.
OnePointSync offers complete IT solutions to small and midsize businesses in Denver. We can help you avoid money wasters when it comes to your IT and cybersecurity. Get a quote from an IT expert today.