At Growing Your Team, we are the experts on building the team that allows your business to scale.
Simplifying the process of hiring the right team members to save you valuable time and earn you more revenue.
Hidden Business Expenses are Impacting Your Bottom Line!
Every business has two types of expenses: those you can see and track, and hidden business expenses. While both will impact your bottom line, if you’re like the typical small business owners you probably only focus on the costs you can see when looking at the financial health of your business.
However, hidden business expenses effect your company’s financial health as well. To better gauge what you can do to impact your company’s bottom line positively, you must understand both types of expenses.
When you think of business expenses, you most likely think of the trackable costs.
These are the expenses that you can see when you look at your cash flow. They occur when you swipe your card, write a check, or hand over cash. There is a physical exchange of dollars, and you can see the money coming out of your business funds.
Because there is a physical transaction of dollars, these are the expenses you think of when you feel that your business is overspending, and you want to cut back. However, this mindset often makes you overlook the other type of expense within your company.
Hidden Business Expenses
In addition to the trackable expenses, there are also expenses that you can’t see but are impacting your company’s bottom line.
With these hidden business expenses, you cannot easily see the movement of dollars, but there is still a cost to your company. This happens when you miss out on opportunities, are paying more than you should for goods, services or inventory, are follow inefficient processes, or when you’re spending time instead of dollars. All these factors can impact your bottom line even though you cannot track them on a balance sheet.
Poor processes can significantly cost your business. When your processes are not effective, it typically means that it is taking more time to reach the results than is needed. This could be because there are unneeded steps within your process or that there are other activities that are delaying the end product or service result.
A deep dive into your processes can help determine what can be removed or adjusted to become more efficient. When processes can be improved, your bottom line can benefit because you can serve more clients, produce more products, or even produce the same as today but with less staff or in fewer hours.
Spending Time Instead of Dollars
Another way you cost your business money that is hard to see is by not paying for the right help or any help at all.
Many business owners think they can save money by not hiring.
However, when you try to do everything yourself or do not hire additional help when needed, you’re doing your business a disservice. This is because you are spending time instead of dollars and that time could have a more significant impact on your bottom line if spent on other activities.
When you keep tasks that you cannot do as quickly and as effectively as someone else, time is not being spent wisely. Also, any time not spent on revenue-generating tasks could be costing your business revenue opportunities.
While you won’t be able to remove all non-revenue-generating tasks from your to-do list, there are most likely things that you are completing that you could delegate to someone else. When you can shift your focus to higher-value tasks because you hired the right help, you will typically bring in additional revenue. Often the bottom line is positively impacted because the additional revenue is more than the cost of the employee.
Are You Costing Your Business?
Are part of your hidden business expenses due to not hiring the help you need?
Find out now if you should hire your first employee or bring on another employee so you can cut down on the hidden expenses and positively impact your bottom line.
Take the quiz today to see if it is the right time to hire help.
Is it Time To Hire An Employee for your small business?
Take the quiz to find out if it’s time to hire your first employee or add another employee to your company.