For any business owner, the name of the game is profit — a goal that’s particularly important to small-business owners. It’s tempting to cut corners here and there to save as much as possible, but some corners need to stay intact; and, in fact, some cost-cutting endeavors do more harm than good in the long term. You always have to take the long view, and once you do, you’ll realize that certain expenses may seem costly but will increase your profits in time.
A Workforce Full of Quality Employees
Hiring intern-level employees or inexperienced workers is an age-old tactic, but it’s rarely as successful as the business owner hopes. The cost of training is bad enough, but you often end up doing it over and over, as those fresh-faced employees go on to bigger and better things or simply disappear. Bring in qualified, quality employees in the beginning; not only do they already know what they’re doing, they’ve been in the game longer, which translates into loyalty.
A Competitive Wage for Workers
Paying minimum wage or lower-than-average salaries is one way business owners save. On the surface, it seems like a smart move, but in reality, it’s a disaster. It demotivates your employees, it does not inspire loyalty, and again, you end up spending more money due to high turnover rates. Research your industry, similar businesses around you, and national averages for the positions you need to fill. If there are enough incentives with the job, you might have some wiggle room, but don’t try to pay employees far less than they are worth.
There are, however, ways you can save. It all depends on the nature of your small business, what you offer, and what you want to sell. It’s possible that you can offset your costs by working with other companies. For example, an investment like Amway is a smart long-term move. Because only 6 percent of its costs go to labor, the profits can often be significant.
Professional Help with Bookkeeping and Taxes
This is your money. It’s your livelihood. An in-house accountant seems like an expense you can easily take or leave, but reconsider that idea. Someone who can get your books in order, keep up-to-date on invoices and bills, cut checks, balance what comes in and what goes out, and generally organize your finances is a lifesaver — and a business-saver. At the very least, take the company taxes to a professional.
A Responsive, User-Friendly Web Presence
Regardless of what you offer, you need to advertise your presence on the internet. Bear in mind that you’re competing with the World Wide Web and every other page on it, meaning that you should not rely on your nephew or business partner’s daughter who once made a beautiful website on AOL. Hire an experienced designer who can follow your vision and shape a site to your needs. Always opt for responsive design so that users who visit your page enjoy the same experience whether they visit your site on a laptop, a mobile phone, or a tablet.
A popular, polished, and up-to-date blog that speaks to your client base is essential, as well. Pay for talented, knowledgeable writers. Do the same for your social media pages — hire a social media manager who can create a game plan for reaching your target market.
The Best Tools for the Job
You can’t expect your employees to do their jobs if they have to use equipment that is either outdated or not right for the task. Buying new copiers, refrigerators, conference tables, and computers is costly, of course, but not as costly as a failure to replace essential items. Things wear out, and you have to replace them. That’s the nature of everything. Higher-quality work gets completed at a faster rate if workers have everything they need to finish the job successfully.
Penny pinching is an understandable urge for the small business owner, but it’s not always the wisest choice. Bearing in mind that you pay for what you get, you’ll find that creating a welcoming, well-trained, and fully equipped work environment now will pay off in the future.
