Many people have heard the famous adage that says you must spend money to make money, and this applies to your business as well. Business owners generally think that reducing overhead is the only way to improve revenue, but this is not the case. When you spend a little extra money in these three important areas, you may notice that your revenue increases substantially. With the extra income flowing in, you may be able to achieve growth plans.
If your business derives at least a portion of its revenue from drive-by traffic, investing more money in eye-catching signage could be a boon to your bottom line. Currently, many potential consumers may drive by your place of business without knowing that your business is there. Others may glance at the sign, but they are not enticed to drop in. When your signage is big and bold, it may make your venue stand out more and get your business the attention that it deserves. An alternative to a fixed sign is to hire a sign spinner to stand on the side of the road during peak traffic times.
Marketing is another area that you may be able to spend more money on. Some marketing efforts are very affordable or even free, such as blogging and social media marketing. You can easily incorporate these marketing efforts into your current plan to potentially see an increase in business. In addition to these options, you can spend more money hiring a professional marketing consultant to provide you with enhanced marketing strategies. The use of big data, personalization, and other strategies could pay off for you.
Some businesses hire inexperienced staff with the intention of training them over the course of the next few weeks or longer. Because they lack experience, they may be willing to work for you for a reduced rate. However, you cannot know how effective these individuals will be in their positions. You also may lack the time in your busy schedule to fully train your new staff members. In some cases, it makes sense to pay more money to have an employee who is ready to hit the ground running on day one. Remember that a trained, experienced employee who is underpaid may leave your business for a better paying job. This means that your strategy to train inexperienced employees may not benefit your business after all.
Like your staff, the quality of your business’ equipment affects your day-to-day operations as well as the quality of your products. While a young business may need to cut down on costs by buying used or budget-friendly equipment, that’s a practice you want to get away from as soon as possible. For example, you may find a great deal on a used range/stove that will get the job done while you’re pinching pennies. However, unless you found a truly great deal, it’s unlikely that used equipment will last forever or provide the top tier quality you strive for. For that reason, it’s a good idea to have a plan to replace the equipment for both quality and maintenance reasons. This means finding companies like Louis Wohl & Sons Inc and researching prices so you know how much money you should be setting aside.
These are areas that you currently may be skimping on in an effort to keep overhead as low as possible. However, when you spend money mindfully in these areas, you may be able to bolster revenue many times over.