There are some expenses that businesses simply can’t avoid. In fact, entrepreneur Corey Shader says that many of everyday expenses are actually great investments that provide a solid rate of return.
At the same time, though, there are many ways in which businesses waste precious budget dollars on useless and detrimental things. Below are five things that businesses should never invest in — and what they should do instead if they want to remain successful
1. Unnecessary Office Space
The COVID-19 pandemic taught business owners a lot, and one is that a physical office isn’t always necessary to do business. Millions of people around the world were forced to work remotely during lockdowns, and continued to do so long after.
Office spaces can be quite the drain on a business’ monthly budget. In fact, they may cost a business between $1,200 and $12,000 for every employee they have on an annual basis.
It may not be advisable, or realistic, for all businesses to go fully remote. However, no business should waste their money on big, expansive office space they simply don’t need. Less is more in this regard. Opt for only the amount of office space you actually need.
2. Disjointed Technology
Technology is essential for any business in the digital age. New technology tools allowed the world to continue working during the pandemic, as mentioned above.
While technology can propel a business forward, disjointed technology is almost always a poor and expensive investment. The ideal scenario is a technology suite that all integrates together in some fashion. This allows all data to be housed in the same system, while also providing the most cost-effective option as well.
Recruiters specialize in finding the “perfect fit” for whatever job opening you might have. And while many recruiters do their job quite well, they are also very expensive.
Many charge a finder’s fee of 20% of an employee’s salary. That’s a lot of money just for bringing you candidates.
Today, it’s so easy to post job openings for free online. In addition, there are other ways to attract solid candidates. An employee referral program, for example, is a great way to attract solid candidates while rewarding your current workers at the same time.
4. Employees Who Don’t Fit
Your workforce is likely one of the most expensive — if not “the” most expensive — line item in your budget. As such, you need to make sure that you cut your losses on employees who don’t fit as soon as possible.
No matter how talented someone is, if they aren’t a fit for your company’s values, vision and culture, don’t hang on and continue to invest in them. Simply move on and find someone else who’s a better fit.
5. Financial fees
Financial fees may seem small on an individual basis, but they can quickly add up over time. Corey Shader says that entrepreneurs should always be on the lookout for ways to reduce these “hidden costs” of doing business.
Some of these fees are issued by your bank, including monthly maintenance fees, ATM fees and wire fees. Credit card and payment processing fees are also a huge drain on your bottom line.
Constantly search around for better options that have low, or even no, fees. It’ll boost your profit without forcing you to make any additional sales.
About Corey Shader
Corey Shader is a self-made entrepreneur, consultant, investor, real estate developer, and founder of several companies, notably Insurance Pipeline. Operating primarily out of Ft. Lauderdale, Corey’s endeavors span across the nation, consulting for start-ups, and sitting on the board of digital media and senior healthcare agencies. As a consultant, Corey helps young businesses develop sales funnels and maximize profitability. Shader takes pride in challenging others to push themselves to be their very best — he believes in constant self-improvement, inspiring others through sharing his own life experiences.