What are the biggest costs for your company? You’ll probably immediately jump to things like rent. If you’re paying rent on a business office, you will be paying thousands each month. If you own the property, you’ll have to invest a lot in the property through maintenance costs. Then there are your employees. They are a massive expense on your business, probably costing you hundreds of thousands each year. Although this will depend on the size of your company. After that, there are legal fees if you have issues with the law in your company and perhaps marketing. We were able to fire those off quite quickly because these are the obvious costs you are aware of. But what about the ones you don’t think about that could be costing your business big money?
Those Little Touches
Tea, toilet tissue, milk and other small miscellaneous spends might be costing your business a lot of money. Insurance companies estimate that around thirteen percent are unprepared for these costs. You might say that you’ll just remove those costs by not providing these small things. However, if you do this, you’ll soon find employees revolt or at the very least, complain. Even if you do, there is the question of where to draw the line. Not providing milk for employees tea and coffee might be reasonable, but you can’t ask them to bring their own toilet paper.
Need A Pen?
We suspect this one might be caused by pens going missing. Come on now; we’ve all taken stationery home from our office and never returned it. But as it turns out stationery costs are a big burden for smaller businesses. Insurance companies believe that this is because business owners don’t bother to price check. They assume it’s a small cost and never realize they are being overcharged. How often do you replace pens and other stationery in your office? Too often, we imagine.
Who are the most well-paid people in your company? It might shock you to learn that it’s probably IT team you hired. IT staff are in high demand right now and with that value comes an added cost of keeping them on the payroll. Top IT teams can earn as much as a hundred thousand per year. That’s why many businesses are instead using outsourcing services. They still get the benefit of 24 hour IT support, but at a far lower cost.
Do you watch how your employees use the phone lines and who they call? If the answer is no, you might want to start. Evidence suggest that phone bills are costing small business owners with big bills every month. The answer would be to start regulating phone calls and restricting them, banning personal use. After all, almost everyone has a cellphone these days, so there’s no need to rack up the business bill. Of course, if you are paying for your employee’s cell phone contracts, you’ll probably find you’re being charged for a lot of personal calls.