Small biz tip: 3 mistakes tanking your profits

When you are an entrepreneur or small business owner, you know that every penny counts. There are a lot of regular costs, plus you have to spend even more when life throws things at you like weather damage or a global pandemic.

That’s why money-saving tricks can make a world of difference, especially in these turbulent times. New data from Statista shows that 29% of small business owners state their biggest challenge. The third biggest hurdle was cash flow: 12% were struggling with financial stability.

If you’ve been in trouble over the past year, we’ve got your back. Here are three helpful tips that will keep your hard earned money in your pocket.

1. Do It All Yourself
When you first start a business, you are probably doing it all yourself. You are the CEO, Accountant, Marketer, IT Person and Chowkidar. As you grow, you cannot maintain that level of control.

Try to be as complete as possible. Small business owners often overburden themselves, but when you take in more than you can chew, the entire company suffers. A competent leader knows when he needs to take a break, so test yourself, identify your limits and plan accordingly.

Identify your biggest struggle. Do you often make mathematical mistakes when viewing financial records? Then hire a new team member to handle those duties.

Or you can also outsource the job to a freelancer. If you are really strapped for cash, you can hire a one time only financial advisor on Fiverr. Just be sure to check reviews, as your mileage may vary.

Basically, you need to identify your problem areas so that you can spend time doing what you love. Otherwise, you’ll be wasting too much time on tasks you hate, which can dampen your enthusiasm. When you get tired of monotonous tasks, you won’t have the energy you need to recognize new opportunities for growth.

2. Not Cutting Where You Need to
If you have a small staff and a lot to do, you know that time is precious. You can’t waste time on things that don’t bring money. This could be a project you were really excited about. You don’t want to give it up, but it’s up to you to make the tough decision.

Expenses also need to be monitored. Maybe you’re cashing in on expensive office space, immovable inventory or ineffective advertising.

Set aside some time to get over your spending habits. Get ready to be analytical, because you will need to examine where your money is going and how well it is serving you. That way, you can identify the places where you need to cut back.

3. Using the Wrong Software
You know the frustration of old hardware (looking at you, slow computer!), but what about software that just isn’t perfect for what you’re doing? Kim hears from listeners all the time looking for a better way to do their accounting when QuickBooks isn’t cutting it.

That’s where NetSuite comes in. It is the world’s No. 1 cloud business system for good reason. If you’re stuck with spreadsheets stored locally on your computer, you’ll love the fact that you can access all your data in one place, whenever you want.

Now, the software itself isn’t free, but you can try it out at no cost and see if it’s right for you. And every small business owner knows that the right software can save you a ton of time and it really does equal money.

To see it in action for yourself, visit Netsuite.com/kim and get a free product tour.

Stop paying for too many systems that don’t give you the information you need when you need it. Remove the spreadsheet and all the old software you developed. Now it’s time to upgrade to NetSuite.

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