Where Do Businesses Lose Most Money?
Time to take a look for some holes…
Business is tough at the moment in the UK. Previously super secure businesses are now having to lay off staff and close stores just to prevent them from tumbling into bankruptcy. The lack of money spiralling through our economy is having a dramatic effect on many people and depending on what you do for a living or who you work for, you may be a bit worried about the future. <br/><br/> To help you help your company or just to put your mind at ease, here are some of the most common ways businesses lose most money that can be prevented. <br/><br/> Advertising <br/><br/> Advertising is a necessity for most businesses to make sure they receive a constant stream of customers. The problem comes when businesses invest a lot of money in the wrong type of advertising or limit themselves to just one method of promotion. Spending money on television adverts may seem like a great way to get lots of exposure but when a business fails to execute the advert effectively or they forget that their target audience is unlikely to be watching when their advert hits the screen, the money is going to waste. Also businesses can quite often put all their promotional eggs in one basket. This may be fine if you can be certain that your chosen marketing medium will work but if it ever fails (like if the internet suddenly disappeared) then the business would be up the creek without a paddle. Businesses lose a lot of money on bad advertising decisions, so be 100% certain before you commit your business to a campaign. <br/><br/> Stationery <br/><br/> Often overlooked and forgotten by office managers, stationery is common area where businesses lose a fair amount of money unnecessarily. By doing things like recycling inkjet cartridges and making sure you never order more envelopes than you need you can save a significant amount of cash every month. Over time this can really add up to a big saving and by consolidating your office stationery supplier to just one source you can make further savings too. <br/><br/> Overstaffing <br/><br/> Wages is almost always the biggest outlay for most businesses. This means that over staffing can be a big waste of money for businesses. To avoid this it is always worthwhile carrying out an office audit which covers what everyone is doing, how efficiently they are doing it and whether someone else could do their job for less. Sacking a few people might save you a lot of money and actually improve your businesses efficiency. <br/><br/> <br/><br/>
About the Author
Sam Qam is a stationery master. Since he was put in charge of envelopes, inkjet cartridges and computer accessories he has been able to save his company more than 50% of what they were previously spending on stationery.
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