All small business owners walk a narrow tightrope. They know that the odds are against them, especially when they enter those all important first few years of trading. They’ve heard the horror stories. They’ve read the stats. They know that 50% of small businesses fail within 5 years of setting up shop. They know that thousands of entrepreneurs just like them started out with the same lofty ideals yet had to concede defeat and maybe even bankruptcy because they just couldn’t carry on walking that line. Just because you have a small business, doesn’t mean that you can’t be a big spender. Small business owners are a fiscally savvy bunch and those who are fairly new to the game will always err on the conservative when it comes to their spending.
Spending, like most other things is neither inherently good nor inherently bad and it’s undeniably necessary in small business. But there’s a universe between wasteful spending and prudent spending, and as important as it is to reign in spending on the unnecessary, the frivolous or the vain, it’s also necessary to guard against false economy.
False economy can be anathema to the small business owner. It can lead them to forego capital investments which, given time, could grow their business. It prevents them from hiring new employees and thus overworking and potentially alienating the ones they have. It can lead them to try and make grade A products with grade C components. The simple fact is that even though it may not always look great on a balance sheet, there are a great many things in small business that are worth paying for…
It’s not always about the bottom line
New entrepreneurs can get extremely myopic when it comes to their bottom line. There’s no denying that it’s a great feeling going over your monthly figures and seeing that you’re in the black. But as your business grows and evolves, that feeling can come at the expense of your ability to keep up with your growth. If you don’t invest in the infrastructure to match the influx of custom that comes with increased familiarity with your brand, the quality of your customer will inevitably suffer and your business will implode.
Productivity worth paying for
All businesses, large and small grapple with productivity on a daily basis. Getting the most out of your tech, your equipment, your employees and (of course) yourself is a struggle that all entrepreneurs face daily. While a solid work ethic is a necessary component of productivity, it’s also an area worthy of your investment. Investing in Managed IT Services, for example, can aid productivity by ensuring that your employees have access to the tech they need to get the job done efficiently. Moreover, they will audit your provision regularly to ensure that you only ever pay for what you use.
You’re awesome, but do they know who you are?
While it’s important to keep your eyes on your own work and ensure that you offer the best product and experience possible to your customers and clients, even the best businesses can’t exist in a vacuum. If you don’t channel efforts into marketing your business, your growth will be hobbled. Even if you have a large base of loyal customers, the fickleness of the digital age dictates that you cannot take the faithful for granted with so much staunch competition out there. Whether you handle it in house or with the aid of a digital marketing agency, it’s vital that you give your marketing the recognition it deserves. There are few areas that offer such a promising return on your investment.
So, by all means tighten the purse strings when necessary… But don’t be afraid to spend for the good of your business.