Identifying Small Business Money Leaks: Is Your Store Losing Money?

No matter the size of your business, you want to make sure you’re spending money as efficiently as possible to help you and your company thrive. However, plenty of small businesses find themselves losing money in places they might not always expect or notice right away. If these small business money leaks left unaddressed, these otherwise minor expenses can end up costing your business enough to make a serious impact. Check on your company’s expenses in these particular areas to ensure you’re not accidentally cutting into your bottom line.

Shipping

If your company ships products locally, internationally, or both, there’s a good chance you’re losing a fair amount of money to your shipping expenses that you could be redirecting back into your company. If you’re shipping locally, ensure that the trucking companies you’re using are charging you a fair price by shopping around with the competition every so often and comparing price points. Every year, trucks transport over 70% of all freight. That’s nearly 11 billion tons. And that means there’s a good chance that at some point, your products are being shipped by trucks as well.

But what about international shipping? In addition to considering the shipping methods, you’ll also want to make sure you’re targeting the right markets internationally. Not every nation will immediately strike you as worth marketing to, but you may need to reconsider your assumptions in some cases. Ireland, for example, is the third biggest island in the European continent. However, that doesn’t always land on everyone’s radar for international marketing.

Office Supplies

Do you remember how much your office spent on restocking the supply closet this quarter? You may need to go back and do the math again. While you might not always pay attention to how much your company spends on supplies like printer paper, pens, computer supplies, and more, these items can add up and be expensive. One possible way to save on these expenses, outside of going paperless, is to be more mindful of the supplies you do choose to purchase. For example, when looking at printer paper, look to buy paper with at least some recycled content. Today, more than one-third of new paper is made with recycled fiber. Recycled products are often more affordable than supplies made from entirely new resources. They also help reduce your company’s carbon footprint at the same time.

Fraud

With e-commerce growing at an unprecedented rate, so too does the rate of fraud with businesses everywhere. In fact, the average company loses 5% of its revenue to fraud every year. Even if you think of your systems as wholly secure and safe, there are many ways that hackers and other digital experts can steal important company and employee information through your computer systems. Make sure that you’re regularly changing passwords for company accounts, and be careful which websites and programs you use. If you allow customers to make transactions online, ensure that your website is secure and is able to protect sensitive information, particularly when it comes to online payment methods.

Staffing

There are many different approaches to staffing that employers take to save money. Some try to hire fewer people for the job, while others look to hire more people for less money. Many business owners will try cutting corners by offering fewer benefits or lower employee salaries. However, this can actually end up costing you over the long-run. Inadequate pay and benefits usually lead to higher turnover rates, which impacts employee training costs and overall productivity. Instead, make sure you’re investing in your team to help them help you succeed.

Finding the right way to manage company expenses can be challenging. Checking on these areas of your company can help you catch extra costs earlier on, allowing you and your company to increase your profits as much as possible.

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