Business Finances: Pennies Make The Pounds - Alejandra's Life

Business Finances: Pennies Make The Pounds

December 3, 2020

Small business owners have the ability to be flexible and find more ways through a problem, than any large business can. That’s why when they are going through financial woes, they aren’t more prone to making drastic cuts to employee numbers or dropping out of contracts with their partners.

But they also need to adapt quickly to not be left behind and have their customer stolen by a rival. The ethos you should have is that pennies do indeed, make the pounds. Cutting and savings, as well as a prudent investment, is a mindset in business.

It’s not something you just do, it’s something you become. 

 

 

Cost versus time

In project management, we always seem to forget the key part, i.e. project design. Managing a project is one thing, but if we haven’t designed the project properly, costs overruns are absolutely guaranteed. Good project design relies on one thing, and that is efficiency. Without efficiency you will be wasting time, become easily lost or distracted. If it doesn’t fit the bill of your efficiency charter, then it should not be included. 

Efficiency means, making sure it can fit within the time schedule you want your project to be completed. It also means micromanaging. If there seems to be an issue which takes too much time to resolve or improve with 4 employees, can you spare another 4 to make a team of 8, so the time can be cut down by half? This is what we mean.

 

Understanding your sinkhole

In every enterprise there’s always at least one sinkhole. This is where money just seems to be wasted and you rarely get back a good return. So if you were to get in touch with an accounting firm, they could highlight where this problem is, uncover it from under a myriad of other issues and show you what you can do about it.

Perhaps you are funding a marketing campaign that has quite poor performance, maybe are funding a side project which has grown too large and doesn’t play a central role in your success. The accountants can find out where you’re losing money and recommend adjustments.

 

 

Save on marketing

‘Painless saving’ is a new strategy that involves being efficient and essentially, cutting costs in a way that won’t damage your business or hinder your outreach. One prominent corner of saving is the marketing campaign. You can promote customer reviews instead of making video ads. Consumer reviews are just as powerful in capturing an audience as is a good story in a video ad. PPC ads that involve showing your 4 or 5-star rating for a product are going to go a long way in helping you get new customers and yet, save money.

The pennies make the pounds in households as well as enterprises. We don’t ask you to be too prudish and start saving to the point you stop investing in your business properly. But where there is an overhang, cut off the fat and become leaner!

 

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