We spoke to a client a while back about implementing an inter-departmental communication system for memos and written reports. We told him he could pick up some inexpensive plastic trays and he said, “Forget it! I’m going to get some nice, well-made baskets.” We couldn’t agree more.
There is a saying that I am sure you have heard in the business world: “You have to spend money to make money.” We have found that, while this saying is too general, there are many situations when it is true. Here are three reasons why:
1. People (including your employees, applicants, vendors, and landlord) judge businesses by their physical appearance. Take a look around your company warehouses, headquarters and offices as if all of your top clients were coming for a tour tomorrow. What impression does the physical appearance make? Realize that you are making this impression every day on your employees. What message does it convey to them that you’d fix a place up if clients were coming, but not for them or for yourself?
2. Sometimes a large purchase will save you time and money in the long run. A new system that cuts out tedious “back and forth” in a project or creating new positions that will make customers love you are clear examples of this. Not only will you be saving time and money, your customer retention numbers may increase and help your business expand exponentially.
3. Investing in things and people who make you money will only make them better and more productive. Wondering if you should spring for that sales training seminar or the building upgrade that will make your employees happy? Think about how much these things will increase productivity.
Sometimes I see new clients “managing by zeros,” a phrase we’ve coined here at Business Success Consulting Group. This is when a business owner has such a phobia against writing zeros on checks that they don’t buy anything, including what the business needs to expand in its production, status or image.
It’s okay to spend money – and sometimes it’s okay to spend lots of money. Just make sure what you’re spending is buying you added production, status, ability to produce or reward. If it can’t buy any of that, then don’t spend it. But if the only reason you’re not writing a check is because you have a phobia against writing zeros, it’s time to take a step back and realize you may be robbing the business of valuable income, image, status and ability to produce.
Finally, this is not an excuse to spend more than you make! It’s okay to take time and save up for large business upgrades that need to happen. Just make sure that, in the end, you make the upgrades and create a better business for everyone to work at and work with.
At Business Success Consulting Group, we help businesses with all aspects of growth. This includes management, finances and HR. Contact us today to find out how we can work with you to expand your business while staying in budget.