Small businesses are lauded as the backbone of the economy, creating local jobs and opportunities. The outlook for these entrepreneurial efforts have been positive in the last few years. The Kauffman Foundation last year that the survival rates of small businesses were at a three-decade high with 48.7 percent of businesses making it past their fifth year.
Small businesses face unique challenges, and survival often depends on streamlining and maximizing resources while reducing waste. After all, they often don’t have the luxury of volume that larger companies already have. Nor do they have potential access to millions from investors.
Here are 4 overlooked areas that may be costing small businesses money:
You’re not simplifying administrative tasks
Small businesses owners may not have robust departments handling HR, payroll, accounting, administration, etc. In fact, many owners or managers may be handling many of these tasks themselves. But that does not mean that there aren’t tools out there to make these processes easier. With a plethora of apps designed to help with employee scheduling to office supply management, software can help small businesses. While it may not be necessary to use software to manage every aspect of your business, simplifying administrative tasks can free up time.
You’re not tracking patterns in your business
There is an ebb and flow to every business. Getting a feel for the timing or seasonality for your business will help you plan better. If you have 5 employees working when there are only a few customers, or 1 employee during peak hours, you’re hurting yourself. Make sure to pay attention and track the timing and patterns of your business to make better business decisions.
You’re not integrating your business software
So you’ve taken our advice and gotten software to help you manage and schedule your employees. Maybe you also have payroll software or expense and budgeting software. What doesn’t make sense is to enter the same data into each of these software platforms separately. It’s a tedious job, and no one has to do it. If you are using software to help manage your business, make sure they feature integration with other software.
Your employees are costing you
Absenteeism, buddy clocking, late arrivals and missed shifts – these occurrences are all costing you in lost productivity, additional administrative time, and revenue. Fortunately, with nearly everyone having a phone in their back pocket, it’s easy to send shift reminders and manage last minute schedule changes. A by Ximble found that that usage of shift reminders reduced late time by 21% and reduced total missed shifts by 16%.
As small businesses continue to grow, business owners should mind all the areas where they can reduce waste. While these four areas may not seem as important as gaining new customers, reducing waste wherever it occurs is key to the success.
Call Williams & Kunkel CPA today in Flower Mound at 972-446-1040 to have a chat about your business.
Source: TG Daily