Ways you’re losing money, big time

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Marketing.

If your marketing tactics for your small business aren’t being monitored, how will you know what works and what does not. You could be spending $69 per month on some silly email campaign and have only a 5% open rate. Get smart if needs be, change to something like Facebook’s paid advertising, and spend half the money to reach ten times more potential clients!

Employee turnover.

Your employee turnover actually sets you back more than you think it would. Hiring and firing costs a lot of money, effort and time. Keeping your employees happy not only saves you a bunch of dosh, but also keeps the face of your business professional for your clients and customers’ sake. Most clients at beauticians and hairdressers, if they pick one as their favourite, will prefer to have the same therapist each time. Therefore it doesn’t look good on you to not be able to hold a steady employee! Remember: most of the time it takes two to tango, so try your best to keep them as happy as you can.

Outdated technology.

Get with the program son! Using outdated technology is downright silly talk. I know it’s hard to keep up with all the current trends on the market, but if you haven’t updated your techno side of the business for some years now, I think it’s time to start looking into it now. By digitalizing certain jobs, you take a whole load off of your plate. I know it’s a fuzzy feeling to pay an employee and keep them on their feet but sometimes you really don’t need someone sitting and twiddling their thumbs at the front desk! Which brings me to my next point:

The (dreaded) front desk.

Why risk someone stuffing up at the front desk of your establishment, when a smart computer can do it all for you? Keep the staff for personalizing and humanizing the customer service of what you specialize in, and make sure they remember that your customers are people and not just a sale, otherwise you could just be using a robot to do it all!

DIGITALISE YOUR BOOKINGS

Accounting.

Use a digital platform, outsource or hire a professional bookkeeper. I suggest to digitalize it to keep costs and mistakes down, and second choice would be to outsource a trusted one, but whichever method you choose they will tell you where you’re losing money, and also if you’re spending excessive money on stupid things! I have also been told many times to never use the same bank account for business and personal funds. Ever. Too much goes wrong here and you lose track of expenses very easily (especially if you don’t have a bookkeeper).

Pricing.

Don’t overcharge your products slash services. As Mark Cuban so famously said “Make your product easier to buy (or come across) than your competition, or you will find your customers buying from them and not you”. Next up, know you can and are very rightly entitled to negotiate your lease. Especially easy if you’re in an area where they cant rent your space out easily if you leave. Finally, for all of the non-perishable business goods such as tea and biscuits for your clients; buy bulk (Costco is awesome). You will be surprised at the amount you will save per year if you add it all up!

Organisation.

Finally, a sheer lack of organisation, believe it or not, can cost your business BIG TIME. An office label maker company did a study (to aid their marketing message) and found that each year, employees not being able to find something lost one whole week of hours. That’s around 40 hours searching for a lost item, each year! And plus let’s face it, a messy front desk is a huge turn off for most clients, *shudder*.

 

Annie x

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