☰ ˟
Alliance circular logo listing Alliance services : Insurance, Payroll, Benefits, HR 
Home Page Email
  • Home
  • Business Insurance
    • Business Insurance Solutions
    • Workers Compensation
    • General Liability
    • Bonds
    • Cyber Liability
    • Professional Liability
    • Group Health
    • Payroll and HR
    • Trade Credit Insurance
    • Key Person
    • 401k
    • Safety Programs
  • Personal Insurance
    • Personal Insurance
    • Home/Auto/Life
    • Automobile
    • Homeowners
    • Valuables Insurance
    • Life
    • Motorcycle
    • Off-Road Vehicles Insurance
    • Renters
  • Industry Solutions
    • All Industries We Serve
    • Commercial Real Estate
    • Construction
    • ContractorsImage of right arrow
      • Window Cleaning Insurance
      • Fire Protection Insurance
      • Janitorial Services
      • Landscaping & Lawn Care
      • Alarm Installation Insurance
      • Tree Service & Arborists
    • Crane, Rigging, & Crane Operators
    • Manufacturing
    • Oil & Gas
    • Restaurant & Bars
    • Hotel Insurance
    • Gym and Fitness Center Insurance
    • Medical Malpractice Insurance
    • Trucking
  • Our Team
    • About Us
    • Location(s)
    • Associate Agencies
    • Testimonials
  • Blog
  • Contact Us
Business
Insurance
Home/Auto
/Life
Health &
Benefits
Payroll
& HR
Home > Blog > 7 Ways Most Businesses Are Throwing Away Money
THURSDAY, AUGUST 16, 2018

7 Ways Most Businesses Are Throwing Away Money

hundred dollar bills laying on work computer

A lot of business owners do not realize that they are wasting money. However, there are a lot of activities that businesses are doing that are limiting their profits. They spend more money than they need to on business-related activities. The following are seven ways that businesses waste money.

 

They Don't Track The Small Costs

Every penny that a business spends matters. However, businesses neglect the small purchases they make for the company. Business owners and leaders seem to forget that the small amounts of money they spend add up over time. Therefore, it is essential that they track the small costs so that they avoid any major surprises. It also helps them make better choices as to whether or not they should buy that product or service they think they need.

Wasting Energy

This is another way that businesses throw away money. When businesses leave the lights on and the air conditioning going, they are actually running up their bill. They are spending a lot more money than they need to be. It would not hurt to turn off all of the lights and the air conditioning in order to save energy.

 

Lack of Goals and KPIs

Businesses often don't have goals and KPIs for each employee. These features can go a long way in saving money and even making money depending on the function of the employee. The business leader can set goals for the employee. He can also use the KPI to track the performance of the employee and keep him accountable.

 

Leveraging Too Much

While there is nothing wrong with leveraging, a lot of businesses tend to leverage too much. In many cases, entrepreneurs or people in business who want to grow their business are not going to have enough money to take care of everything they need for growth. Therefore, business owners are going to have to borrow money. The only problem is if the debt businesses accumulate become too high. This can wipe out any of the profits that companies make for one thing. Then there are the interest rates that come with borrowing money which can suck up the cash more quickly than other expenses.

 

Printing

Printing is very costly for businesses for many reasons. One reason is that businesses have to pay for paper which can cost a pretty penny. Also, certain types of paper are going to cost even more. Then there is the activity of shredding paper. These days, it is more cost effective to save something electronically. For instance, sending an email can make everything more convenient and simpler for people.

 

Jumping On a Project Without Adequate Testing and Information

This is another costly activity for business owners. Jumping into something without proper knowledge is very risky. While it is often stated that it takes risk to bring reward, one of the worst things a business can do is jump blindly on a project. For instance, trying to create a new product without any idea on the market can backfire significantly on the company. They could wind up losing a lot of money in the process.

 

Spending Too Much on Marketing

While marketing is vital for businesses, spending tons of money on marketing can actually cancel out the potential profits. Also, testing is vital for a marketing campaign. The best thing to do is try it out with a small amount of money. If it doesn't work, then it would be unreasonable to expect a more costly version of that marketing campaign to work. Among the ways that business owners can figure out whether or not their ad campaign can work is through market research.


These are some of the ways that businesses throw away their money. It is critical that business owners pay attention to every dollar they spend. One thing that can help is consulting financial experts or hiring a financial expert for the business. Financial experts can look at all of the factors and determine what direction is best for the business. One of the most important things for companies is being as efficient and careful in the way they spend their money. When business owners cut their costs and save more money, they wind up needing to borrow less money. This makes it easier for them to pay off the debt they get from leveraging.


If you’re looking for some other great ways you can improve your life and your business, make sure to spend some time in our blog! Hopefully, you’ll learn that while some costs are necessary, and others are not, and become far more knowledgeable on how to save your company some money. No matter what stage of life you find yourself in, there will almost certainly be something you can learn and grow from reading.



Posted 10:42 PM

Share |


NOTICE: This blog and website are made available by the publisher for educational and informational purposes only. It is not be used as a substitute for competent insurance, legal, or tax advice from a licensed professional in your state. By using this blog site you understand that there is no broker client relationship between you and the blog and website publisher.
Blog Archive
  • 2024
  • 2023
  • 2022
  • 2021
  • 2020
  • 2019
  • 2018
  • 2017
  • 2016
  • 2015
  • 2014
  • 2013

  • business insurance(116)
  • personal insurance(73)
  • small business(34)
  • homeowners(29)
  • car and auto(27)
  • health and benefits(25)
  • cyber(22)
  • construction(20)
  • saving money(18)
  • contractors(18)
  • claims(18)
  • health insurance(17)
  • workers compensation(13)
  • bar and restaurant(11)
  • life insurance(11)
  • general liability(8)
  • cost containment(8)
  • oil and gas(8)
  • payroll and hr(7)
  • human resources(7)
  • agency news(7)
  • roofing(5)
  • auto insurance(5)
  • bonds(4)
  • personal lines(3)
  • cannabis(3)
  • hail(3)
  • commercial auto(3)
  • recognition(3)
  • become an agent(3)
  • commercial insurance(3)
  • payroll(3)
  • weather(2)
  • trucking(2)
  • job(2)
  • hail insurance(2)
  • homeowners insurance(2)
  • commercial auto insurance(2)
  • comercial auto(1)
  • restaurants(1)
  • professional liability(1)
  • hail damage(1)
  • property(1)
  • covid-19(1)
  • business(1)
  • inland marine(1)
  • broker of record(1)
  • colorado(1)
  • trade credit insurance(1)
  • record hail(1)

View Mobile Version
  • Carrier
  • auto-owners insurance logo
  • Carrier
  • Carrier
  • Carrier
  • Carrier
  • Carrier
Connect With Us:
Social Social Social Social
Agency
Alliance Insurance Group
7910 Ralston Rd., Ste 7
Arvada, CO 80002

Phone: (303) 279-9700
Business Insurance
Home/Auto/Life
Health & Benefits
Payroll & HR
Home
About Us
Privacy Policy
Contact Us
Powered by Insurance Website Builder
Alliance Insurance Group Rated 4.8 / 5 based on 5 reviews. | Review Us