“You have to spend money to make money” seems to be a quote that many business people are fond of saying. While it’s often true, a lot of small business owners saying this are often stretching their budget needlessly. Whether you’re just starting your small business, or things are humming along, it’s important to allocate money wisely. You may not realize it, but you probably don’t need to be spending your money on certain items:
All New Stuff
When you’re in the beginning stages of starting a business, it’s tempting to purchase new furniture, clothes or maybe even a new computer. Be patient, use the equipment you already have and set your concentration on marketing and developing great products first.
Advertising is something every small business feels the need to do. Often however, entrepreneurs become enamoured with their own marketing ideas when a more measure, strategic approach is needed. Be sure not to fall into this trap by thoroughly researching what is driving sales and making sure that informs your marketing strategy.
Let’s be honest, you can probably afford to wait another day or two for that box of inventory and supplies. Think about the money you’ll save by avoiding high shipping charges when you just wait an extra 48 hours. Unless you absolutely need them the next day, pocket your money on this one.
Buying or Renting Space You Don’t Need
If you can work from a desk in your basement, do it. It may not be glamorous but just think of the money you’ll save on rent!
Promotional Items That Don’t Translate into Sales
Personalized t-shirts are cute, but will they sell and make a good profit? Will they convince your customers to buy more of your products now that they have a t-shirt with your business on it? Promotional items can work, but you must select the item(s) carefully, be mindful of your budget limits and have a plan for placement and distribution, even if it’s just on your website.
Be sure to visit the Bullfrog Blog often for more tips on marketing, productivity and risk mitigation.