“Before the end of the month, I’m all out of money, and I can’t pay.”
This is a sentence we often hear from both wage earners and business owners. Another common situation is the confusion that occurs when your money ends. In fact, you know this is going to happen, but you’re still surprised.
This is usually a surprise because you missed your basic business spending. Most of the financial problems experienced by the company are not the major expenses. Over time, small and unnecessary expenditures are slowly causing financial distress and if you do not take early precautions, you are likely to have a great deal of trouble in the future.
As a result of the research carried out for business owners from many sectors, it is stated that the budget exceeded problems are seen for at most 9 reasons.:
1. Inability To Track Expenses
Not following daily expenses causes a lot of businesses to waste their money and have problems at the end of the month. Of course, at the end of the year you’re looking at spending by creating a general financial report once, but apart from that, no one knows where the money is going all year round.
The best way to improve this process is to follow it on a regular and weekly basis by creating a powerful expense report for each department/department.
Regular expense tracking can be done either through Google Forms and documents that you can create for free or by using pre-accounting software such as Parachute.
2. To Not Be Aware Of Advantageous Procurement Agreements
You can save your company’s basic expenses such as electricity, cargo, fuel and electricity! Regardless of the size of your business, even if your expenses are below a certain limit, there are companies that you can benefit from the power of collective buying.
An office is a company management panel that reduces operating expenses and facilitates expense follow-up by offering advantageous procurement agreements on the internet. In your panel, you can make agreements with suppliers different from one point and track your expenses for all expenses of your company.
Any interruption in your fixed costs will be a step in the name of not exceeding your budget. So which expenses can you deduct?
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3. Unnecessary Possibilities Offered To Employees
Benefits such as snacks, free monthly membership in your office, gym, comprehensive health insurance make your employees very grateful, of course, if your employees really use these opportunities.…
If your breakfast in the morning is in the garbage at the end of the day, if nobody knows where the gym is, something’s going wrong. Cut your spending right now.
You can solve this as follows: when planning for the next year, ask your employees what opportunities they are using. Replace opportunities that no one cares about with new opportunities that will excite the team and will not waste your money. By doing so, you have not wasted any money and you increase the motivation of your team.
4. Misuse Of Office Supplies
Think about all the materials your team uses during working hours. Pens, print cartridges, toilet paper, paper glasses and empty papers… each of which has a very small share in your total expenditure. But if we calculate all the wasted materials monthly or yearly, the amount you can save is not small.
The best thing that can be done in this case is to produce solutions that are less wasted for the most commonly used products. For example: instead of paper cups, use glass glasses that you can wash and reuse. Avoid paper waste by not printing from the printer unless it is necessary. Give up your notebooks used in the office and use free note-keeping applications, such as Evernote, Wunderlist instead. Reduce paper costs and get easy-to-share writing!
Rent, credit card debt or company payments. No matter what happens, the increase in the number of late payments may force you to do more than you think. So you have to take precautions not to delay your payments.
From time to time, most business owners who delay their payments admit they do not know their due dates.
In this case, the precaution is quite simple: to learn all of your payment dates and to have an application that will remind you as you approach them. Simple reminder applications on your smartphone will be more than enough.
6. To Be Convinced Without Enough Bargaining
Everyone knows that in today’s business world, the price tag is very likely to not be the last price of the number. If you are not negotiating with the seller companies, if you accept the offers you receive directly, make sure you actually leave a portion of your money on the table. Many small business owners miss this opportunity because they either say that bargaining makes them feel bad and uncomfortable, or they give up negotiating early. But we can say that this discomfort will only happen in the first few times.
All you have to do is try to get a discount on your current price at the next purchase!
7. Spend A Lot Of Money On The Wrong Marketing Activities
An old marketing phrase says:
Every company spends half the marketing budget, but nobody knows what half.
Today, we can say that this statement is no longer true with developing user tracking systems. The right and targeted marketing activities, with the right message, capture the right people at the right time and try to make them customers.
In order not to throw away your marketing budget — at least half — you have to define your potential customers very well and try to face them in the most efficient way possible. Before you start spending money on advertising campaigns, be sure to evaluate free methods such as social media, content marketing, email, etc.in the most efficient way. With pay-per-click, performance-based advertising activities, you can avoid wasting your money if you need to.
The “not to put all eggs in the same basket” rule which we hear from our elders for years also applies to market. Instead of directing your entire budget to a single marketing channel, do your budget planning accordingly, trying different channels and seeing which one you can get the highest return on.
8. Trying to deal with too much technology
In the face of today’s technological developments, you may want to try everything you can easily get excited about. As a result, it is not even possible to find yourself in a lot of technology at once. Sometimes this can be caused by an ego war; you may not want your company to be deprived of the available technologies. So you try to adapt to the technologies that can give you more than your company needs. Devices such as smartphones, HD displays, and computers that are constantly evolving will force you financially in every period.
To avoid this situation, eliminate your credit card! Give yourself at least 1 month to decide if you really need it before you buy a technological device. You may have made unnecessary expenditures in advance, just promise yourself that you will spend only the necessary technologies for the future.
9. Inability To Manage Good Time
If you can’t manage a good time, you can’t manage money well. Bad time management reveals a limited time problem. This means overtime, rush negotiations, delay costs, rush failures. When you enter a cycle with limited time, you spend more money and do less quality work.
To avoid this, you should consider the following ingredients:
Set your priorities clearly.
Avoid organizing meetings unless it is necessary.
Know how to say no.
Don’t waste time with perfectionism
Don’t try to do everything yourself, let others help you.
Remember, the more you think about money management, the more you will have to spend a similar effort for time management.