Businesses are meant to make money, and business owners expend significant amounts of time and effort pursuing new opportunities to improve their bottom line. What many businesses often overlook, however, is the internal practices that—left unchecked—are costing businesses significant amounts of money without them even knowing it. If you’re looking to patch up any revenue leaks in your business practices, here are some of the biggest money wastes for business that you might want to zero in on:
Not Investing in Your Employees
If there’s one consistency across industries, it’s that hiring new employees is expensive—especially if you’re looking for quality. Not only does it take up time that could be spent on other tasks, but you’ll also need to spend time and resources on training and onboarding. Though it’s not always obvious, your employees are investments, and you lose that investment if they leave your company—meaning you have to start all over again.
By investing in your employees—through continued training and other benefits—you’ll be more likely to retain them as well as get more efficient and skillful returns from them. This means better work for your clients, which usually means more clients in the future.
Poorly Planned Sales Process
It might seem strange that a process designed to make you money is actually costing you money, but it can be true. If you have an inefficient sales process, you’re likely not converting as many leads as you should be. Which means you’re not making as much money as you should be.
It’s a good habit to regularly examine your sales process for areas that could be improved. Are you pitching your services as well as you could be? Has the industry changed, making the way you sell yourself less efficient? Ultimately, your sales process is the lifeline of your business, so you should regularly invest time in making sure it’s perfect.
Poor Billing Process
Likewise, it might seem strange that your billing could be costing you money. After all, isn’t this exactly where your money comes from? Unfortunately, many companies lack clear organization when it comes to tracking their billing. This can lead to misplaced invoices, late payments, and a host of other issues that can cost time and money.
Whether you handle the billing yourself or have a team dedicated to it, make sure that there’s a clear system in place. This can include knowing who’s accountable for what tasks, how files and invoices are organized, and how late payments or difficult clients are handled.
Inefficient Time Tracking
Tracking time is a great way to keep an eye on your business’ finances. It will tell you how much your payroll costs you, and it can even tell you what projects are taking up the most time. Best of all, you’ll inevitably see payroll expenses go down as your time tracking becomes more accurate.
Many businesses use inefficient time tracking systems, like paper time cards, which can be wildly inaccurate, take hours or days to process and don’t provide as much actionable insight.
With modern time tracking technology, businesses can have their employees clock in and out in seconds and receive 100% accurate data on employees’ time. Many time clock apps can even track time on a project-by-project basis so you know exactly how much time was spent on any given project. Combined, these two features will save you money on lost payroll expenses (like overpaying employees and the time spent processing timesheets) and allow you to better allocate resources for future projects.
One such systems with many helpful resources is ExakTime’s time clock app.
Are there internal processes that are costing your business money? It’s worth spending some time to analyze how your business runs to see if you can uncover any overlooked gaps that are costing you money for no good reasons. It’s kind of like finding money in your couch cushions—except a lot better!