Money: it’s difficult to overstress how important saving money is for the future of your business. You need to remember that well over 90 percent of startups fail in their first year and in most of these cases it was definitely overspending. Overspending led to the weight of the business getting too heavy and ultimately, the entire model came crashing down. You might think that the issues is business owners whose eyes are bigger than their stomachs, but that’s not the case. The issue is that money trickles out the business model through holes in the plan. These plugs have to be filled, or it will slowly but surely mean that your business is drowning in debt. So, let’s look at some of the holes in your model that could ultimately be costing you a lot of money.
Oops, Late Invoices
This is a particularly common problem for business owners who are selling a product rather than a service. Particularly, when the product in question is being sold in bulk to suppliers. Sometimes rather than paying straight away a buyer waits until they can shift the merchandise and until they have made a profit. This benefits them greatly because they are never out of pocket. However, for the first business owner, i.e., you, it’s a completely different story. Because you’re not paid on time, you are left in debt, and your company is forced to deal with what happens when businesses don’t play nice. Essentially, you’ll be left waiting for a payment that could take weeks even months to rely on. If that wasn’t bad enough, you’d need this payment to stay afloat.
You have two options on how to correct this situation. The first is arguably the simplest one. Rather than souring a relationship with a business owner that could benefit you in the long run, set up a great invoicing system that’s simple. One of the main reasons why businesses pay late is because the invoicing has been far too complicated. Make it quick and fast, and you can expect quick and fast payments.
Of course, if the situation is desperate you may want to think about invoice factoring. That way, you can sell off late invoices and get your business back on track without the threat of a debt weighing over your head.
Yes, trouble with technology can be another thing that will cost your business a fortune. Unfortunately, this one isn’t quite as easy to see. The problem with tech is that it will cost you money without you even realizing. You might be selling products online as well as offering services to clients digitally. To do that, you need to use servers on your computer networks. If your servers are running fast, then it’s going to mean a lot of transactions, heavy traffic and great levels of revenue as well as profit. Slower? Well, then you’re looking at a low return on the investment that you put into the company.
So, it’s important to make sure that your computer networks are operating as they should if you don’t want them to cost you money. To do this, you might want to hire an IT support team. They will monitor your computer networks, ensuring that any problems with issues like speed are dealt with swiftly and effectively. They can do this using SQL server monitoring tools and other software. The kit is streamlined ensuring that signals can be sent to the right individuals to fix the problem without delay. As such, they will be troubleshooting issues with your servers 24/7, guaranteeing that you are always operating at your maximum potential and making the greatest amount of money possible.
Big businesses are overrated. If you want your business to succeed you need to keep things simple. That means that you should get rid of staff that are not needed or necessary for your business to run. You’d be surprised how many employees you can remove from the model, particularly when you start looking at new tech like automated assistance. With automated software, there’s no need to hire people to complete certain jobs like accounting. Instead, you can use automation, and your accounting will still be completed just as effectively with no trouble at all. The best part is that you’ll only have to pay one fixed cost for the software rather than a total annual wage. That’s just one of the ways automation can help you save money in your model.
As you can see then, once you start thinking about the issues it’s easy to plug the holes in your business model and stop your business from sinking in costs.