There are all kinds of expenses that can come up in connection to running a business. Some of these costs are needed to put a company in a strong position to compete and succeed. However, some are unnecessary and end up bringing little benefit to a company.
Avoiding this second class of spending, waste, can be very important for small businesses. Waste can drain a company’s resources, cutting in on profits and impeding its ability to achieve its overall potential. It can also leave a company in a particularly vulnerable position should financial shocks hit.
With how busy things can get for small business owners, it can be easy to fall into wasted spending and not even realize it. So, it can be important for entrepreneurs to regularly look over their company’s expenses to see which ones are useful spending and which may be waste that can be cut.
Waste can take many different forms. According to a recent Forbes article, two common ones for small businesses are:
- Having more meetings than necessary
- Poorly managed advertising and marketing efforts
What other types of waste do you think small business owners need to particularly be on the lookout for?
Being vigilant about detecting and trimming unnecessary spending is one of the many steps entrepreneurs can take to protect the financial health of their company.
Sometimes, despite a business owner’s best efforts to keep his or her company in a strong financial position, difficulties still strike. There are many things outside of an entrepreneur’s control that could threaten his or her company’s ability to stay afloat.
When a company is struggling financially, there are a variety of things that could provide a path back to a more stable situation. In some instances, Chapter 11 bankruptcy protection can be a good fit for businesses in this respect.
Skilled attorneys can help owners of companies that are undergoing major debt and financial struggles understand what options they have for moving forward.