Most smart business owners have a firm understanding of the importance of saving money. They know that one day, their savings could come in handy, especially during slower seasons.
Saving money is certainly essential to success, but there are also ways in which small business owners can – and should – spend their money. It might seem counterproductive to spend money when you want to put it in the bank, but sometimes spending in the right ways can helping your business immensely over time, protecting it from slower business times.
Here are three ways smart business owners spend money:
1. Your Staff
Your business is nothing without your employees, and happy employees are more productive, motivated and loyal on the job. Smart business owners know that it’s worth spending a little extra money to ensure you have the best people on your staff and to reward them for their hard work.
When you can, invest money in your employees. This could range from offering bonuses or gifts for meeting goals, providing better-than-average benefits plans, offering training opportunities or increasing salaries.
Happy employees not only give more to your business, but they reduce the turnover rate, saving you from the cost and headache of finding and training new workers. Plus, your clients and customers like seeing consistency in your staff, so they’ll appreciate that you keep your workers happy.
Many business owners think marketing is about finding clients immediately, but a good marketing strategy looks to the future. Just because your business is booming today doesn’t mean it will be tomorrow, and if you only focus on marketing when things are slow, your downturns will last longer than they should. Unfortunately, too many business owners only gear up their marketing efforts when business slows down – by which point it’s too late.
No matter how busy you are currently, marketing should be one of your financial priorities. You need to market yourself today to ensure you gain new customers tomorrow, next week and next month. Spend your money on a proven marketing strategy that draws customers in, and you might be able to shorten or even avoid future downturns.
3. Administrative Tasks
Running a business comes with tons of moving pieces – many of which can be outsourced. Yes, outsourcing costs money, but it also saves you valuable time and energy. It may also prevent needless headaches.
There are many service providers out there that offer valuable assistance, which can free up your time as a business owner to focus on the big picture. You can outsource your payroll, invoicing, bookkeeping, accounting, legal advice and marketing. You can even hire an administrative assistant to help you with day-to-day business tasks.
These outsourced providers are specialists in their fields and can provide you with the services you need, when you need them. If you are not an expert in those fields – especially legal and accounting – outsourcing those tasks can also prevent costly errors.
Your time is valuable. Investing your money in outsourced providers is worth the financial expense.
Smart business owners know there is a time and a place to spend money. Spending your money in the right ways can save you time and energy. It can even save you money in the long run by reducing turnover and preventing expensive mistakes. Consider whether you could help your business, and yourself, by spending money on your employees, marketing and/or administrative tasks.
At Bennett Thrasher, we provide customized outsourced accounting solutions, partnering with you to fill the role of both bookkeeper and accountant. Contact Shane George, Jimmy Lee or Matt Natho by calling 770.396.2200.