With competition upping their game every single day, you have to run more and more projects together to be able to compete, thus controlling finances has become one of the most important aspects of any business. What good is any idea (that could possibly be worth millions) if money is allowed to enter and exit unchecked? When a company has employees who spend company money, it can be no surprise to find that money may (just possibly) disappear. This can obviously cause a lot of frustration for the CEO who’s company is losing money that could have been invested. With technology cutting through the blurred lines of disappearing money, it has become easier for you to keep track of money going in and out of the company, and have complete control in order to move forward.
When marketing, remember that the smallest actions can have multiple effects, this is known as the butterfly effect. Keep the spend tight with the discipline of a bee though. These few steps will help you gain complete control on the road to marketing like a butterfly and spending like a bee.
Know your audience (and their price)
Have you ever wondered why there are no ads of Lamborghini’s & Ferrari’s on the television? Well, automotive companies that advertise these vehicles figure that people with the money for such expensive cars will not be sitting in front of the television, but rather behind the computer or on the phone reading emails or doing some form of work (or of course, driving a supercar). If you want to market a product or service, it’s critical that you know who your target audience will be and know how to reach out to this audience through the use of appropriate media. Since marketing is such a big expense, every single penny must be used in a way that will guarantee the message is received by the correct target market.
Know your budget and keep track of company spend
No marketing company should overspend, knowing the budget plan makes it possible to allocate the appropriate amount, for any project. Keep track of expenses with any of the many different methods out there.
Paper-based spend control:
The pen and pencil method is for those who either trust the old fashioned way (and have a lot of extra time) or maybe just because they feel more comfortable using something that is more private and physical. This method takes time and every single paper is written by hand, kept track of and filed. This makes a lot of room for human error and lost papers. People who prefer the pen and pencil method think it’s a safer way of dealing with expenses when in reality electronic systems are much safer and even has the potential to save you time and space.
ERP system vs dedicated purchase order system:
ERP software usually has purchase order modules, but often lacks a lot in terms of usability for purchasers. The system would only be accessible to accounting and finance, thus leaving all the data entry and reconciliation work for them. That is where a dedicated purchase order system comes into its own.
Procurement software was created with the intent to allow any company to automate the purchasing processes. One of the leading functions that make procurement software such a game changer, lies in the fact that a purchase request can be sent through approval rules and gives a good level of spend accountability. Combined with features like gathering and analyzing data trends, this type of software is a must-have for any company looking for total spend transparency and accountability on the go.
Other ways of managing expenses.
The use of spreadsheets is an eager contender when it comes to deciding on a finance tracking system. This can be good for tracking expenses and cash flow, although it can be limiting and also allows for some level of human error.
Using a web-app is another way to track expenses and the type of service you use will depend on you and your business. This does not require software to be downloaded to your computer and can be accessed at any time, online. A PO can go through the whole purchasing cycle without ever having to go to the office. The downside to this is that you don’t have the data on your PC (if you did not download your reports recently) and if the internet is down, so is your data. This must be acknowledged before deciding to use this service.
Other tips on spending like a bee.
Every successful CEO will know that one of the most important things, when it comes to spending money, is keeping the receipts for tax returns. Not keeping cash receipts can result in a variety of cash flow, accounting, and tax problems. You can also lose vital information of purchases. Talking about receipts, it’s important to hire a professional to handle taxes. Trying to cut out costs by doing your own taxes, can throw the business off the road to success. Hiring a professional to do your company’s taxes can prevent potential disasters. Having organized and accurate paperwork is very important for any successful business.
There are many ways to manage company spend, investment and marketing. Choosing the correct method will depend on the size, type, and needs of your business. Sticking to fundamental financial management basics will allow any business to use the money at their disposal wisely and appropriately. Money is the energy of a business and if you can lead and think like a marketing CEO, you will easily manage to market like a butterfly and spend like a bee.