Managing a business is a balancing act, especially in terms of finances. You need to have right balance to get your cash flow flowing smoothly. As much as possible, you want to cut corners on some things to save some pennies and cut down business expenses.
But there might be things that are eating up your funds. Firms specializing in business and company setup in Dubai provide a list of unexpected business expenses that you need to check. Here are some of them:
- Not pricing properly
Proper pricing of products and services can be tricky. It is based on various factors like the location. For instance, pricing of products and services in Fujairah Freezone are different from other business districts in Dubai and UAE due to business policies and rules. Other factors that should be taken in consideration is that the cost of materials (if you are offering products) and manpower, and including the cost of utilities. Pricing your products and services wrongly will messed up the cash flow as you might be spending more on manufacturing these products than selling it.
It would be best to learn the proper way of pricing your goods and services. Evaluate your pricing monthly and quarterly. You need to remember than cost of materials are not fixed, you need to include your profit, expenses and other elements when putting a price to your goods.
- Too much office space
Having too much office space is a good thing, especially for your mental health. You and your employees have ample space to move around. But it can also be a bad thing if it is eating up your business funds. Just think about the upkeep and maintenance of the space. You might be paying more than you should be.
When looking and choosing your office space, the factors that comes into play is the convenience for you and your team, cost of rent and upkeep, and the cost of utilities. Do not rent a space that is too big for your team. Learn to evaluate how much space you need to do your work and would not affect your allotted utility expenses.
- Too many equipment
If you are new business owners, buying loads of equipment for your new office space might excite you. But in the long run, you will realize that it is a waste of money, space, and utility cost. Be smart on buying equipment. Buy only what you need and do upgrades as you go along.