As with any startup, money can be tight. Something that certainly won’t help you grow is business waste.
There are plenty of things you will need to spend money on, especially as your sales and customer base grow. However, knowing what not to waste your precious dollars on can be just as important.
Poor Tracking
Before we jump into specifics, we need to talk about proper financial tracking.
Poor tracking of expenses can be the death of a business. As we stated earlier, money is always tight when it comes to startups. Small expenses can quickly add up, and before you know it, you’re in the red.
Record every purchase, no matter the size. This way you will always know where every dollar is being spent.
Tools You Don’t Need
You’re going to need tools, but do you need those top-of-the-line premium tools packed to the brim with extra features? It can be tempting to think of it as a good investment, but if you aren’t using the features right now, it’s business waste.
This goes for programs too. You might well need an email management software to automate your thank you and promotional messages. However, if you currently have 100 subscribers, why pay for the tier that includes 500? Save the money now and when the time comes, upgrade.it’
A New Office
Offices are expensive.
If you’re just starting out, sticking to a remote work plan can mean saving a ton of dough for your business. Over the last few years, we’ve quickly found out that working remotely is not only feasible, but is often the best way to go.
For those who already have an office, rethink if you really need to move to that new office building. Unless your employees are tripping over one another on their way to the bathroom, you could probably use the money elsewhere.
Scaling Early
Piggy-backing off the last two points, moving to a new office or spending money on things you’ll only need down the road, are both examples of scaling early.
It might seem like a prudent choice preparing your business for the future, but you should only be scaling with demand, not before. This also includes increasing your production before you have the customers to fill that capacity.
Hiring Problems
Your employees will be the wheels that keep your business turning. When it comes to hiring and attracting talent, there are a few ways to avoid business waste:
Premature Hiring
Don’t be afraid to contract work out if the need for that job isn’t permanent. You might need someone for a project right now, but in three months, you’ll be paying for a salary you don’t need.
The Right Hire
This is one of the times when spending the extra time now will save you money in the long run. A bad hire can lose businesses an average of $15,000. Finding someone who can deliver and matches your company’s mission is much more important than just finding someone right now.
Get Some Of That Money Back
With expenses adding up, finding out you qualify to get some of that money back can be a beam of light.
If your business is conducting any research & development projects, make sure you aren’t leaving any money on the table. You would be surprised what expenses qualify and just how much you can get back by having the right SR&ED consultant on your side.
Who is the right SR&ED consultant? Maxim Innovation.
We specialize in SR&ED tax credits and know exactly how to get you the most money back on your claim. Let’s work together and put some money back in your business’ coffers.
