Cutting Corners Doesn't Grow Your Business
In order to increase cash flow and improve overall revenues, small business owners will sometimes attempt to avoid spending while also reducing operating expenses. Since the financial crisis, the general movement for United States businesses have been to scale back on their operations and minimize business costs. However, there can be long term consequences as a result. At the time, this may seem like a good idea for a lot of entrepreneurs, it is actually counterintuitive and diminishes the value of the business. When owning and operating a small business, the brand cannot grow if you refuse to spend money.
Not spending money can cost your business a lot more in the end, whether it's time, money, effort or the success of the business. As an entrepreneur, it's important to walk in with your eyes wide open. Growing a business sometimes requires you to step outside of your comfort zone and take the plunge into spending business cash.
Investing in the business is the only way to grow: whether you need to expand to new locations, hire additional staff, add new products or services, upgrade equipment, or a variety of other measures, an investment of cash can be necessary. The bottom line is, not investing in the business can leave you at a competitive disadvantage.
Cutting Corners Isn't New
Since the dawn of business, companies everywhere have attempted to save money wherever they can. From restaurants using less expensive ingredients in their food to automobile companies adding less features to their base model vehicles, some of the world's biggest brands have been known to cut costs.Here are three well-known examples of such incidents in recent years:
- Hershey has reduced portions of cocoa butter in favor of vegetable oil.
- Packaged food brands are inserting soy protein into their meals.
- General Mills is replacing pecans with less expensive walnuts.
This may improve profits but it may hurt their established brand name moving forward.
How Not Spending Money Hurts Your Small Business
Here are four examples of how not spending money can prove damaging to your small business:Advancements in Technology
Modern computer equipment and software is a must-have. If you're using older computers and other technology you're skimping on your business needs. Over the past five years alone, there have been such tremendous advancements in technology that not investing in this equipment will hurt the long-term feasibility of your brand. From mobile devices to cloud computing, it's likely that your industry rivals are purchasing this type of technology and leaving you behind.21st Century Marketing
Are you still depending on the Yellow Pages for your marketing plan? It's time to enter the 21st century and embrace the newest forms of marketing. Social media, mobile, search engine optimization and website content are just some of the latest methods of marketing available to improve the prevalence of your brand and attract a greater number of customers to your small business.Outsourcing Time-Consuming Tasks
Almost every entrepreneur starts out wearing many hats: you're a CEO, CMO, CIO, CFO, CTO and other members of the alphabet soup. But in most cases 'doing it all' soon becomes counterproductive.Being swamped by endless tasks can actually hurt your productivity and quality, which is why you should consider outsourcing such time-consuming tasks. When you outsource even just a tiny portion of the necessary duties, you can place a heightened emphasis on the more important elements of the business.
Experienced, Professional Staff Members
Instead of hiring some of the best and brightest, you have decided to hire a minimum wage, entry-level employee who might not have any desire to grow with your business. Some of the most successful and savvy businessmen have tapped into employees that have commendable ambition, a strong constitution and an incredible acumen for business. Rather than minimizing your labor costs, seek out more qualified candidates.
Alternative Funding for Business Can Help
One of the reasons why small businesses will cut corners is because of difficulties in attaining business financing funds. With so many daily operating expenses that smaller enterprises have to regularly face, it can be tempting to start cutting back on the necessities and essentials as a way to contain costs. But even cutting back will not always provide the cash needed for true business growth. This is why many entrepreneurs have considered alternative funding solutions.
The marketplace now provides companies with a wide variety of alternative funding options, including one of the most popular: a business cash advance. This alternative funding tool allows small businesses to invest in their company and help the brand grow to new heights without cutting corners. Financial services firms like Quikstone Capital Solutions provide companies with the monetary tools to cover short-term expenses and hone in on the bigger picture.
Check out Quikstone Capital Solutions and apply for a business cash advance today. With additional funds, cutting corners will be the last thing on your mind.
