Eight Business Expenses Startups Waste Money On

1. Marketing without metrics: Startups should focus on conversions and ROI, measuring their marketing efforts, conducting A/B testing, and avoiding vanity metrics.
2. The wrong accounting solutions: Startups should invest in a great accountant or CFO and utilize accounting software tools to ensure sustainable and efficient financial management.
3. Too many software solutions: Startups should assess their software subscriptions, eliminate redundancies, and streamline their tech stack.
4. Not keeping track of expense reimbursements: Startups should establish a clear expense reimbursement policy to prevent overspending.
5. Booking business travel on consumer websites: Startups should use modern travel management tools like TravelPerk to access corporate discounts, track expenses, and have greater control over their budget.
6. Extravagant employee perks: Startups should explore more cost-effective ways to improve employee engagement and retention, such as effective management, consistent feedback, and employee recognition.
7. Overspending on ‘swag’ and branded items: Startups should maximize their budget for branded items by focusing on high-value items and using them strategically in exchange for case studies or feedback.
8. Premature scaling: Startups should avoid scaling too quickly and incurring startup expenses and debts they cannot afford, instead focusing on thorough market research, finding product-market fit, and building strong, lean teams.

Source: 8 business expenses startups waste money on