Running a small business can be incredibly rewarding. At the same time, though, it can also be really difficult. Few people are experts in every aspect of entrepreneurship. For example, you might be amazing at sales, but accounting isn’t your strong suit.
In any case, lack of information and expertise results in profit loss for many business owners. There are countless ways small businesses miss out on money – are you making any of these costly mistakes?
1. Not tracking your marketing efforts
To bring people to your business, you need to invest time, effort and money into marketing. Without marketing your target audience may not know you exist. Though marketing is the cornerstone of building a customer base, it’s also crucial to focus only on what actually works.
To this end, Google Analytics is probably your best bet, Entrepreneur pointed out. If you’re not already using it, start today. If you’ve installed Google Analytics but don’t understand it, take the time to learn about what each piece of information means and how to apply it to your business’s marketing strategy.
2. Overpaying for office space or equipment
Every business needs to have a dedicated physical space. Even if it’s an online business, it’s still helpful to have an office to do your work and keep your files. But not every business needs a middle-of-main-street storefront, Fortune Marketing Company pointed out. If you’re renting an expensive location that’s not bringing any added value to your business, consider uprooting and finding a more affordable space.
Just as every business needs space, nearly every business needs some sort of equipment. But as a small business, you probably don’t need as much as you think. When you’re new, consider using an alternative lender to lease the equipment you need, then ramp up to the newer models later on.
3. Not being energy efficient
You may not think that something as unrelated to your core business plan like your heating bill is affecting your finances a whole lot, but don’t overlook rising utility costs. You can save small amounts of money by upgrading your light bulbs and being sure that all computers are turned off at the end of the day, Business Insider explained. All that adds up to savings that could be applied to your marketing strategy, equipment or supplies.