10 Ways Micro Businesses Throw Away Money
- krmuwumba1
- Mar 9, 2017
- 4 min read
Living in New Mexico, one of the funniest and most vague terms I hear is "Small Business". According to the SBA, they measure Small Business by their revenue and that amount is in the terms of MILLIONS of dollars. So the term of Small Business really lumps so many businesses together that couldn't be more different. You have small business seminars and networking groups where you have dog trainer solopreneurs mixed with award winning companies that who have 20 employees and make over $2,000,000. It's the solopreneurs and micro businesses who fall through the cracks as far as support services are concerned and those are the businesses I'm most passionate about.
My personality is very protective, if I care about someone/something I will fight tooth and nail to protect them from getting hurt and the same applies to micro businesses. Day after day I hear about these individuals who are getting completely preyed upon by companies making them feel like they have to spend huge sums of money for support that wasn't even created to serve businesses like theirs. That is why I feel compelled to post this blog.
1. Paying thousands of dollars for a website - Don't get me wrong, website design is an art, and if you need a site with very fancy capabilities, then a website developer is a wise investment. But for many micro businesses, their basic needs are for them to share what they do, possibly sell a couple of products, and how people can get a hold of them... and that's about it. If you don't feel comfortable making your own site (I prefer Wix simply because of how easy it is to use), then find someone who is able to make a website for you for not a whole lot of money.
2. Paying for e-mail capture programs on your website - I've heard of several people who were sold a subscription to insert a capability in their website to capture visitor's e-mails. The price is high and they don't get any return. Your website/web developer is able to insert that very easily.
3. Leasing a credit card reader - Unless you're a full on retail store that makes thousands of dollars a day, this is not necessary. Programs like Square, PayPal, etc... have their own readers they give the users and their fees are competitive.
4. Opening a brick and mortar store/office too early - When you start your business it can be easy to jump to wanting a brick and mortar store or renting a fancy office. DON'T DO IT! When you open a location too early you are automatically strapping yourself down to having your overhead skyrocket and you need clients just so you can pay rent. While you're growing, as long as you're productive, try to stay small until you have the capital to support the risks involved in having a permanent location.
5. Overpaying for marketing assistance - When businesses open, it's like vultures circle wanting to swoop in and take what little money they have started to make. They give proposals that consist of concepts that are far from effective for the business and wayyyy beyond the capacity and budget of the micro business. Don't get in over your head by making commitments that really aren't right for you or your business at the time.
6. Attending too many networking events - Basically this comes with the saying "Time is Money". The less time you're working billable hours, the less money you make. Shocker! There are loads of networking events every single day and they all have a place, but not every event is right for you and you don't have to attend every one of them. Sometimes you need to be in the office working on the deliverables you promised the client you met at a networking event. So know how to set boundaries.
7. Using corporate finance/insurance salespeople - These individuals are just that: salespeople. They have their quotas they need to hit and at the end of the day they need to put food on their family's table. That's fine, but you need to look out for what's best for you. When you're talking to a financial person tied to a specific company (please note they're not all like this) they will sell you whatever they can without regard to your needs. If you can, find an independent finance consultant who can help find the products that fit what you're really looking for.
8. Paying for networking groups - One of my biggest soapboxes!!!! There are SO many networking events... FREE networking events (see #6) you don't need to spend a whole week's revenue on belonging to a group that you can get the benefits from for free.
9. Paying for fancy computer applications - There are a lot of programs out there who want you to pay them for doing a service. That's fine, however, there are also a lot of programs (Thank you Google, Mail Chimp, Survey Monkey, and Evernote!) that meet micro business needs for FREE!!!!! And if you haven't learned it already, "Free" is the best word in the entire world when you own your own business.
10. Eating out too much - It can be so easy to eat out when you're on the road or even having meetings, but those add up super duper fast. A bag lunch is a beautiful thing when you're working for yourself and I highly recommend it when you can to avoid the $20 lunch and the $5 coffees when you're not with clients.
So there you have the ten ways micro businesses thrown away money. If you're looking for a resource you can trust in helping to direct you in some of the free/low-cost options I'm happy to help. Your business is your baby, so be sure to care for it and that includes being protective over the finances. Invest in quality programs that are what's best for the business, and they returns will definitely pay off in the end.
