5 Ridiculous Ways Your Business is Wasting Money

Some business owners are known for being excessively cheap, which is an act that can actually cost a company big money. On the other hand, most businesses throw away a lot of cash going out of the way to appear prim and proper when being conservatively professional will do. From putting doilies under drink glasses to sending hired cars to pick up clients from the airport, here are five ways businesses are throwing their profits into the trash bin.

1. Complimentary Water and Coffee

Tap water might not be the most appealing beverage that you can offer customers or employees, but most of your bottled mineral water is not being consumed. Businesses that keep fresh pots of coffee brewing all day long just end up pouring it down the drain. You can either use a smaller coffee pot, use domestic blends or install a water filter so there is unlimited access to great tasting water.

2. Wasting Paper

It is likely that you want all of your paperwork to be printed on crisp white sheets of paper, but your business is also probably wasting paper by the pound. When a printer gets a paper jam, coffee is spilled on a ream of paper, or an employee copies the wrong document, the paper that you purchased for practical usage ends up being wasted and that costs your business major money. To reduce paper waste, try recycling your paper products as well as using leftover paper waste to make scrap paper that can be used for another purpose.

3. Electricity Costs

Keeping the lights on in the bathroom as well as keeping an illuminated sign in the window during business hours is just draining power. There are a lot of ways that businesses waste electricity, and subsequently money. Turn off any company computer that hasn’t been used lately and unplug all appliances that are currently not in use. The only areas at your place of business that need to use electricity are those that are being occupied by employees and customers.

4. Computer Equipment and Gadgets

Spending money on computer equipment that your staff is either not trained to use or doesn’t want to be bothered with is a complete waste. If you have more computers than you have employees, you might want to sell them rather than wait for the day that your business expands. Think about upgrading your business computer systems instead of getting new ones just because there are newer models available for purchase.

5. Travel Expenses

Some travel may necessary if you’re going to be growing your business, but a great deal of the extraneous expenses that companies incur for travel are simply unjustifiable. Carry as little luggage as you can when taking a flight, and don’t be hard pressed about flying economy class if your goal is to save money. Save the wining and dining for personal vacations as accumulating a big tab during travel can be disastrous for business.

Various businesses just don’t understand the concept of being frugal. A lot of the extras that you offer to customers and staff would be better spent on business related investments rather than pulling out all the stops. Be conservative about your business spending so that you can offer businesses and discounts instead of frills.

• Tags:
• Accounting
• Finances
• Financial Planning

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