What should your small business be spending money on? After you make payroll, pay rent, resupply and reinvest, what is the best use of any extra cash? Should you pay a bonus? Hire new employees? Expand the store? The point of this article is to discuss important small business expenses that frequently get overlooked in the shuffle.
- Expertise– A lot of small businesses are initially resistant to the idea of hiring anyone, citing concerns of control and expense. However this can be a costly mistake. Smart business leaders are always open to learn more, but they also recognize their own limitations and hire quality people who can fill in the gaps. Hiring someone to tackle areas you lack expertise in can be a key investment.
- Marketing– Yes, I am a marketing person. I think that the main reasons small businesses fail to properly invest in marketing is because they do not understand it. They want immediate results and give up when things do not happen instantly. If done right, good marketing can bring in leads, create awareness and boost the brand. Remember to consistently invest in marketing for best results. Hire a designer for your logo, or a professional for you site for starters.
- The Customer– Don’t forget to appreciate those who pay your bills! Marketing can help attract new customers, but what about current and previous customers? Investing in a good Client Relations Management (CRM) System is a great way to keep track of current and former customers. Furthermore, consider some unique gifts or incentives for your previous customers.
- Professional Advice– Every business should have a strong relationship with a CPA, bank and business lawyer. Yes, we are a law firm. This means we are uniquely qualified to speak on just how essential good legal advice is to your business. We have dealt with too many businesses that face big consequences down the line because they neglected the legal side. Do not ‘wing it’ when it comes to the legal side. The same thing applies to sound financial / tax advice. A little law now really can save a lot later.
- Yourself– Last but not least, invest in yourself. Health and education are key investments.
What do you think? Do you already use any other items on this list? What are essential small business expenses for your business? If you have any questions or comments, contact us or comment below.