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Why spending cash is good for business growth

Spending money on the right areas is a fundamental part of ensuring your business achieves long-term success. We explore three reasons why this is so important below.

We’ve all heard the phrase “you have to spend money to make money”, but when you’re working within a budget, that’s easier said than done. It might seem counter-intuitive at first, but spending money is integral to ensuring that your business continues growing – as long as you’re spending it in all the right places.

Here’s how spending money can help rather than hurt your business.

Cutting corners comes with a price

Most business owners and managers understand the pressure to save money wherever and whenever they can. The belief is that saving as much money as possible is crucial to success and longevity, as it will give you a bigger budget to play with in the future – but this often isn’t the case. Unfortunately, spending less money on the seemingly small, ‘unimportant’ aspects of day-to-day business can severely impact one thing that money can’t buy – a good reputation.

For example, if you’re running a restaurant and decide to cut staff hours to save money on wages, this could easily lead to negative reviews about the quality of your customer service. If your reputation is damaged, you’ll have to spend more money on areas like advertising to get people through the door again. Alternatively, if you instead spent more money on wages, you could garner a great reputation for your business and, subsequently, increase your ROI in both the short and long-term.

Workplace hygiene shouldn’t be ignored

Creating a hygienic business is crucial if you want to keep staff happy and safe, and customers coming back. Putting some firm hygiene policies in place at the start and ensuring kitchens, work stations and bathrooms are set up with the right equipment, minimises the spread of harmful viruses and bacteria. Adding plants to a room will filter the air and help with positive wellbeing.
The cost of sick employees to a business can be around $340 a day, which means taking the steps to better hygiene in the early days, will cut costs in the long run.

Technology can be a pricey, but a worthwhile investment

Innovation is a huge part of running a successful modern business. So why do so many companies refuse to take the plunge when it comes to doing things like updating software or integrating new technology? Because, in the short-term, it can be quite pricey and have little immediate impact.

It’s important to remember that blowing your budget on the last technological advancements isn’t the solution, either. Research shows that, just as managers can be afraid to integrate new technology, many are afraid of being ‘left behind’, and thus don’t invest wisely. Instead, businesses should invest in technology that is well-suited to their needs, creating comprehensive strategies that detail a short and long-term plan for integration.

By navigating this effectively, your business can use new technology to push itself towards success. With the right investment, your business can save a wealth of time and money and improve customer experience all by integrating the right technological solutions.

Doing things in the right way is crucial to ensuring long-term success and achieving a happy and safe workplace for your employees and visitors. These small steps can set you apart from your competitors.

 

 

 

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Published
28th March 2018
Author
Kathryn Bush, Research & Innovation, Rentokil
Categories
Own Time, Take Control
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