Money. Moola. Cold, hard cash. If those words send shivers down your spine, you’re probably a small business owner.
It’s no secret that small businesses have small budgets. It’s important for you to manage every dollar, dime and penny to the best of your ability. But while it seems counterintuitive, there are a few areas where you should be spending more — not less — money.
Technology
We live in an automated world. There are tech solutions for nearly every business function, from bookkeeping to payment processing and beyond. And yes, those solutions do cost money … but maybe not quite as much as you think.
The average cost for an outsourced bookkeeper (read: not formally employed by your company) can run between $500 and $2,500 per month. A cloud-based solution, however, can be had for far less than that a year.
This is a case of “you have to spend money to save money” — and the savings absolutely add up!
Tax Professionals
When the calendar approaches tax time, it’s natural to want to save a buck by taking a DIY approach, firing up your laptop and navigating yourself to one of the many online tax services. But are you really getting your money’s worth?
Probably not.
There is no substitute for a qualified small business tax professional. What can you deduct? What can’t you write off? If you work from home and share your laptop with your children, can you still deduct the cost of internet? Are all the lattes you buy to get you through the day a “qualified business expense”?
Don’t skimp on your tax preparation. The minor savings you’ll gain by using Taxes R Us online will pale in comparison to the savings you’ll enjoy by employing a qualified professional.
Employees/Personnel
Small businesses often have a small staff, and that’s OK. The trick is to maximize the staff you do have and invest in the right people.
Employee A might be happy to work for minimum wage, but if you’re only getting minimum work out of them, is that really worth choosing them over Employee B, who charges a bit more but delivers higher-quality results?
Good employees typically don’t come cheap. You’ll need to invest plenty of time and/or money in the onboarding process and make sure they have the tools and training to get the job done. But a higher-paid “team player” is better than a low-wage “expendable” any day.
Marketing
When money is tight, the marketing budget is often the first to go. After all, you have plenty of other commitments — product development, overhead, salaries, and other recurring costs.
But if no one sees you, how will they know you exist? And if you’re not selling your product or service, how can you continue to pay all those recurring costs?
If it sounds like a vicious cycle, it is! Marketing costs get cut to pay other expenses, nothing is sold because you’re not marketing, bills begin to pile up, and before you know it, you’re out of business — especially if your competitors are stepping up while you’re stepping out!
The solution? Look for ways to market on the cheap. Find a marketing agency that can work within your (admittedly small) budget. Anything is better than nothing at all.
The Bottom Line
For the budget-strapped small business owner, it can often seem like you’re hemorrhaging money with little results. Keep on keeping on! When you spend your money in the right places, the benefits will far outweigh the (temporary) drawbacks.
Whether you’re struggling to keep your head above water or sitting pretty on a yacht in the deep blue sea, Mischa Communications can tailor a marketing strategy for your unique situation. Reach out today and tell us how we can help!