And there it goes…. (image)
“A fool and his money are soon parted.”
A popular proverb, and it’s something to bear in mind when running your business. We would hesitate to call you a fool – nobody’s perfect – but if you have made the following financial mistakes, you need to think long and hard about what you are doing and earn yourself some wisdom.
Are any of these mistakes relevant to you?
Mistake #1: Buying into the latest trends
Now, wisdom dictates the importance of staying in touch with the latest trends in business. You don’t want to be left in the dust playing catch-up, after all. However, not every new technology will be relevant to you. Not every popular opinion should sway how you run your business. Step back, look at what is available by all means, but don’t take the plunge too quickly, as you may make a bad decision which will cost you dearly.
Mistake #2: Holding the purse strings too tightly
Okay, so we have advocated the need to control your spending. However, it is possible to save money by spending money. Ditching an old computer on something new, or replacing it with tablet technology for your staff, may be a viable idea. Getting rid of the fax machine and focussing on fax server software will also save you money (and time) in the long-term. You may not want to spend too heavily on staff training, but if it will improve your team’s efficiency in the office, you will eventually profit. So, don’t be a Scrooge – look for ways to save money, even if you do have to spend money at the outset.
Mistake #3: Not keeping a safety net
Many businesses get into debt because they haven’t accounted for emergencies. Failed hardware will need fixing or replacing. Staff members may leave prematurely. You may be faced with legal costs from a disgruntled customer. The weather could damage your premises. Any number of things could happen to your business, and each of them could take a huge chunk from your finances. It is possible to get yourself back into the black should debt become a problem, but by keeping a safety net, an emergency fund to give you back up, you are negating possible financial risks.
Mistake #4: Paying over the odds on expenses
A business has many expenses, many of them a necessity. However, there are ways to cut costs, so you don’t need to pay over the odds on everything. You can reduce your insurance and utility bill costs by using a price comparison service. You can reduce the expense of equipment by bulk buying from your supplier, or by using a cheaper source. And you can cut out staff fuel expenses by allowing telecommuting, rather than always dragging your team into the office. You can do all of these things, and make considerable savings on a month-by-month basis.
In business, you don’t want to waste money. You don’t want to eat into your profits through any blunders you have made. You want to spend wisely, save where you can, and put the money you earn into better use. So, avoid the mistakes we mentioned, and practice the art of wisdom in all facets of your business.
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