Money is the lifeblood of the business. If it dries up, then you’re past the point of danger. That’s when it’s time to hang up your hat and call it a day. So make sure you don’t get to that point. Protect your business, whether it’s a home business or a growing startup. Protect it from huge financial losses by putting preparations in place beforehand. Watch your money, how you spend it and how you protect it. We’ll look at how you do that.
Track every penny
To protect your money, you need to have a real good grasp of what it’s doing. How much you have coming in and how much you have going out. It’s not enough to just approve expenditures. You have to be able to look back on them. Organize invoices, expenditures and overheads clearly. That way, if your cash flow is looking bad, you can look at costs that could be easier eliminated.
Get your business protected
Sometimes, you won’t have the ability to see where the costs are going to come from. It could be a natural disaster hitting the workplace or serious legal liability. You need to have the protection in place to make sure it doesn’t hit your finances hard. Compare business insurance quotes and find out how to get the cover you need for as little as you can.
Keep your employees safe
One of the costs that often proves a thorn in the side of employers is that of worker’s compensation. There’s no arguing with it; you owe an employee if they get hurt on the job. So, you need to cut those costs by significantly decreasing the risk of injury or health problems in the office. Keep the workspace clear at all times to prevent slips, trips and falls. Talk to your employees about safety risks and develop a clear safety plan with them.
Cut down your energy bills
One cost that not enough businesses think of is how much it takes just to keep the place running and the lights on. But there’s a lot you can do to cut down the energy bills in the office. Use efficient resources like LED light bulbs and invest in upgrading your HVAC systems. Newer heaters and air conditioners are a lot more energy efficient than older ones.
Retain your customers
If you really want to avoid losing money, then you need to look at where most of that money comes from. Your customers. Don’t spend so much time fighting for new ones. Retain your existing customers. Offer loyalty systems and keep in touch with them to keep them happy with your services. It takes seven times less effort to retain a customer than to gain a new one.
Collect the money you’re owed
If you’re a company that sends invoices, then you can’t afford to let them drift out there in the ether. Work to get them back quicker. First, be pleasant. Good etiquette matters. Use customized details like order and customer numbers on them to make them easier to track. Use clear time-based terms like ‘due in 30 days’ as opposed to ‘on receipt’. Don’t give them room to waffle.
