When scaling up your business, you want to follow the same prudent steps that made it a success. Many new companies fail due to financial inefficiency. That is, the owners wasted money. If you waste money while scaling up, then the company could turn insolvent without warning. So, be on the lookout for three common money wasters that can ruin a business when it’s in the ScaleUP phase.
Bad Hires
Counting the ways a terrible new employee can ruin a business could take an hour. The damage a bad hire can inflict might be more than any envisioned worst-case scenario. Losing money from low productivity or poor performance is an obvious problem with underperformers. Customers leaving due to terrible service is another issue. Probably the most damaging result of bad hires is when civil litigation occurs. Everything from personal injury or sexual harassment can lead a company into court. Improving your screening process and hiring practices can decrease the chances of selecting a bad candidate. If you’ve already chosen someone who isn’t working out, you should take action right away before things get worse..
Inefficient Marketing Materials
The reasons for investing in marketing materials include boosting sales, raising brand awareness and drawing in customers. The materials must be put into action to deliver such results. Unfortunately, 80% of marketing material goes unused by sales teams, and sales teams waste as much as 43 hours a month in research. All that time and money can drain a business’ financial and other coffers.
Avoid rushing into putting together marketing materials. Producing too many seasonal items can be a major mistake, so make sure some items are “evergreen” and won’t become outdated. Work with a professional ScaleUPCheckUP™ Ambassador marketing firm to come up with the most effective and salient materials. This way, you’ll see a return on investment instead of waste.
Don’t Rent Unnecessary Office Space
Renting plush office space to create a positive impression may eventually work against you, particularly in today’s virtual world of teleconferencing and co-working. Extra square footage and a high-brow ZIP code come with significant rent costs. Spending money unnecessarily on rent means diverting money from more critical areas. Renting a smaller space and doing some work on a telecommuting basis might be a better strategy. Audit and carefully consider your space requirements before making any commitments so that you don’t mistakenly rent beyond your needs and means.
Why deal with any disasters during the scale-up phase? Concentrate on amassing wealth and avoid becoming insolvent by following these steps. It will save you a headache in the long run.
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While the above is not and should not be considered legal advice, since circumstances vary, ScaleUPCheckUP™ monitors these rapidly developing issues, as enforcement of the law switches into high gear. Instead, the foregoing is intended as an overview and not legal advice, nor does it create an attorney-client relationship. However, contacting an attorney to steer through the maze of bureaucracy to register and defend a mark may very well be necessary to consult an attorney.
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