Look around on the vast majority of business blogs and you will find most of them discussing ways your business can improve their bottom lines by reducing spending. And they are right, of course. However, the reality of the business world is that you can’t expect to progress very far unless you are prepared to use a little money. Without spending, you won’t be able to invest in capital, or staff, or materials – so it’s an essential part of what you do.
The big question is, what should you focus on when it comes to parting with your cash? Of course, every business can benefit from cutting their costs, but one of the biggest challenges of starting a business is knowing what things to invest in – and when. In this guide, we’re going to take a look at some of the key points you need to remember, and hopefully leave you with a few ideas about what is worth your money when you are a small business owner.
General design
Design and your business’s appearance is a lot more important than you might think. And let’s be honest; a lot of startup companies get this wrong straight from the off. For example, when you start out with a small budget, you might try and find a cheap web designer, or pay a friend a small amount of money to come up with a company logo. The trouble is, investment in design is essential, and modern customers will know straight away if you are trying to wing it with inferior design work – so it is necessary to put a little more money into it and hire a professional.
Technology and apps
Pretty much every business in the country – if not the world – is reliant on technology in some form or another. And the truth is that if you cut corners in this area, you will run into significant problems. Every single technology problem you have will be directly linked to your customers questioning your reputation and professionalism, and it will impact your revenue. So, if you intend to power your customer-facing business with technology, don’t try and get a bargain with amateurs – invest in the top software development companies instead. Similarly, don’t use a cheap or free web host – the terrible services on offer will reduce your customer base by a significant amount. Ultimately, any business trying to save every cent on tech will end up regretting it.
The law
Another area where you can’t afford to be stingy is for legal services. Like them or loathe them, a lawyer or business attorney will be your very best friend once trouble pops up on the horizon – which it will, inevitably. The worrying fact is that the vast majority of small businesses don’t retain the services of a legal adviser, as they think it is an unnecessary expense. But it won’t be long until they get hurt by that decision – when a contract dispute crops up, for example, or a business rival steals their idea and intellectual property. Furthermore, the law is incredibly complicated, and no matter how intelligent you are, the fact is that you are running a business, not a law firm. And if you find yourself up against a trained legal professional in the event of a case going to court, the chances are you will lose – and heavily. Get a lawyer as early as you can, and they can help you in so many ways.
Accounts
Another area of business that new startup owners tend to save on is their accounting. There are millions of small business owners that do their own books, but the reality is that pretty much all of them will be overpaying for tax. If they hired a professional accountant, however, they would quickly find themselves optimizing their capital, reducing their tax exposure, and cut down the inefficiencies that are costing their businesses a small fortune. If you want to maximize the potential of your business – and save a fortune in the process – always hire an accountant.
Marketing
Finally, you can have the finest product your industry has ever produced, but the reality is that if no one knows about it, no one will buy it. Investing in good marketing strategies will help you reach the exact type of person that wants, needs, or craves your products – and make a success all the more likely. Again, don’t hire your friend to run a marketing campaign, as the chances are you won’t get results. Always invest in a quality company with a proven track record in your industry.
