5 Important Small Business Expenses and 5 Expenses to Avoid

You’ve got to spend money to make money. Spend it right!

Do you already have an established small business but keep finding yourself stuck financially? Are you already questioning what’s important to spend money on RIGHT NOW? It’s pretty simple and common for small business owners to get themselves in a bad money situation. Let’s take a step back and sort some things out together. Prioritize what’s important for your small business… ready, go!

5 Important expenses-whether you’re a start-up or established.

1. Money Cruncher (accountant). Having an accountant or CFO can save you exponential amounts of money; even more than you spend on them. They are also great at holding you accountable and breaking down your returns and investments.
2. Branding and Marketing Research. Branding is extremely important.  It defines your business and expresses who you are through your tone in communication, as well as visually. Don’t waste money on this being done poorly, or you won’t be remembered by customers.
3. Tax professionals. Do you know how much money you can waste by doing your own business taxes? Tons! Why not take a load of stress off and have someone ready to do all of this for you and give advice? Do it, you won’t regret it.
4. Equipment. Now when I say equipment, I don’t mean expensive, unnecessary equipment. Get what you need and what works. Upgrade as you grow and get into a better financial place.
5. Outsourcing. Outsourcing can save you a great deal of money. You won’t have to spend nearly as much on a freelancing COO or PR person as you would if you hired them on full-time. You don’t have to provide them with benefits, even! The ups of outsourcing a COO is that they can see the inner workings of your business from an outside perspective, create goals that work, and identify issues you don’t even see!

5 Expenses to Avoid.

1. Expensive Software Subscriptions. There are PLENTY of software options out there that can give you exactly what you need at a very affordable price; sometimes free! Do your research before you just jump on a software subscription with all of these extra features that you don’t even need. Don’t waste your money!
2. Purchasing your “customers”. I’m sorry but do you want REAL customers? Or do you want to pay for them, just so people think you’re “popular”? We aren’t in high school, so let’s get you real customers, eh? Your following is only worth something if it’s natural and real.
3. Bad Advertising. “Do your research and determine if your customer profile matches that of the publishers’ audience. And don’t commit to long-term anything” (from Chris Sonjeow of LoveBookOnline.com). He said it best. Research is important!
4. Over-the-top office space. This is a no-brainer. We all want our new business or small business to look successful, but it’s unnecessary and a huge money sucker. Stick with what you can actually afford and as I said above- upgrade as you grow!
5. Non-measurable marketing. If you can’t measure your results when you create a marketing campaign, then don’t spend your money on it. Plain and simple. If you don’t even know what goal you are trying to reach, don’t go overboard.

Every business will have different needs, as you are all unique. Having someone to hold you accountable and keep you on track is necessary and important for your finances.

Are you stuck? I can help you, not only with operations; but with HR, marketing, web development, and more. Let’s chat.