“Boy, what a sound! How I love the sound of clinking money! That beautiful sound of cold hard cash! Nickels, nickels, nickels! That beautiful sound of clinking nickels!” – Lucy (The Peanuts Comic Strip written by Charles M. Schulz)
When it comes to financial success, Lucy Van Pelt was one wise psychiatrist who did not play about her money. Before providing wise information or a listening ear to Charlie Brown and the Peanuts gang, she was known for saying:
“Wait a minute. Before we begin, I request that you pay in advance. Five cents, please.”
Clearly, wise beyond her years, Lucy knew what she was worth and refused to waste money on her small business. Now, the big question is– ARE YOU?
If you were 100 percent honest with yourself, would you say:
A) you use your business money wisely, or
B) you waste it on things you believe are helpful?
If your answer is B, no need to fret. We’ve all been there, and we want to help you. Below are eight things small businesses waste money on, along with tips on how you can avoid wasting your precious profit.
Buying an Expensive Logo
Having a logo to promote your business is important, but it does not have to be expensive. There are many free logo-making websites available such as logomaker.com and freelogodesign.org. If you’re not a designer, savvyfiverr.com is a great website to check out. There you can choose someone to create your logo, remain within your budget, and grow with your business – remember, you always have the option to get a new logo later!
Having a “Fancy” Website
When starting a small business, creating a website should be the least of your worries.
In fact, you can design one of your own for $0 using Wix or choose from thousands of wonderful template-based websites for free using WordPress. Don’t forget hosting– which also doesn’t have to be expensive. As a happy client of https://newbloghosting.com/, we are ecstatic about the price we pay and the services we receive for hosting services.
Seeking a Personal Assistant
People use the quote, “You can’t do it alone.” However, we beg to differ. When it comes to jumpstarting a small business, sometimes it’s best to start alone(or with help from family and friends) and then seek helping hands. If you feel like you are in a bind, reach out to people you know that have already found success with their small business for help or advice. Remember, when asking for a helping hand, be willing to offer help to that company in return. That way, it will be a win-win situation for both businesses.
Marketing Without a Plan
Many businesses fail because they began their business marketing without a plan. They simply look at trends and mimic what they see. Before they know it, they are out of funds and wondering what went wrong. Instead of wasting money on leading trends, it would be best to research your niche and find out what marketing strategies work best for you and your business.
Technology is a great tool to invest in when you have a business; however, if you’re just beginning, it is best to use what you have. You can take professional photos with your smartphone and use natural light (in lieu of an LED ring lamp). If you feel you must have new technology, try going to a thrift store or check out bargains online from websites like craigslist.com and facebook.com/marketplace/
Not Tracking Expenses
Many businesses lose money by overspending and not keeping track of their expenses. To stop wasting money, create a budget or spreadsheet to keep track of the money that goes in and out of your business account, and stick with it. There are also free bookkeeping tools out there, like Wave, where you can keep up with your finances all in one place.
Buying Unnecessary Office Products
Long gone are the days of purchasing fancy file cabinets, paper, folders, and paper clips to keep information at hand. Today all you need is Cloud or Google Drive to get the job done. If you subscribe to Office 365, you can get 1TB of free document memory in the Cloud using OneDrive. Google offers you 15GB of free Cloud storage on Google Drive with your Gmail account. Consider starting with those options first before investing in their paid options.
Before buying an ad, it’s important to do your research to see how that advertisement will benefit you. Instead of spending money on an ad that your target audience may not even see, it is best to use platforms that showcase your business for FREE! A prime example is social media. It is a perfect platform to showcase what you do and how you do it, and it is free of charge.
Do you like what you read? Share below what tip stood out to you the most and what you plan to do to make that change. Have any additional tips for a new business owner? We’d love to hear from you!