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This article is part of the Spend Smart series. Read more stories
Key Takeaways Small businesses rarely fail from one big mistake — it’s usually the slow bleed of tiny, overlooked costs that pile up until profitability disappears.
If your margins feel tighter than they should, these seven hidden expenses could be to blame.
Small businesses that fail, oftentimes fail after the accumulation of tiny, silent, boring expenses that slowly choke profitability — and by the time you realize it, it’s too late.
If you’re in the 35% of small businesses that aren’t profitable, or if you’ve ever felt like your business should be more profitable than it is, this is for you. Let’s break down the hidden costs that quietly eat into your margins, how to spot them and what to do to get your margin back.
Related: Need To Cut Costs? Start With These 10 Money Saving Ideas
1. The cost of not knowing your numbers
The fastest way a small business loses money is simple — you don’t know your numbers, or you aren’t paying attention to them.
The point of having any kind of numbers in your business is to give you clarity to use for your decision-making. If you don’t, it’s way too easy to make reactive decisions or hold onto things.
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