Taking a look at your books and cutting needless costs is a great way to minimise losses. However, cutting costs that leads to under resourcing is not. Instead of saving costs by cutting marketing, staff, or perhaps carrying less stock, why not look at how you can invest in your business and maximise profits through business growth.
Hire the right people
Having the wrong staff in your business can be expensive, time consuming and often stressful. Take the time to develop a thorough recruitment process that minimises the financial risk associated with employing someone that will only burden your business. If an employee is proficient, motivated and committed to your business, your investment in them will undoubtedly provide you with a quick return. The right employee can work wonders for your business.
Invest in training
Cutting training to ease cash flow problems is a short-sighted and often damaging approach. Training adds value. Do not think of it as an ‘additional cost’. Not only does training allow your staff to be more confident with customers or clients and more able to provide quality advice, if you align the training with your business goals, your staff will be able to propel your business to success, providing you with the tools to expand your business or even take it in a different direction.
Have up to date resources and equipment
Industries change and businesses rely heavily on computers, phones and other technical devices which are constantly being updated and replaced. Having up to date resources and equipment in your work place not only allows your employees to stay up date with industry changes, but makes you business more accessible to your clients.
It’s not to say that your business needs to have the latest and greatest technological devices available, but your business does need to stay up to date with advances in communication, data storage and other technologies that allow your business to run more efficiently. Further, if you wish to ensure that your clients are provided with timely, current advice, the resources your employees have access to need to be up to date.
Market your business
Marketing is an expense that is necessary for business growth. Relying on word of mouth from your existing clients will only get you so far. People need to know about your business, your product or your services in order for them to engage you. If you are not currently marketing your business, jump on board; it is well worth the investment. If you do have marketing measures in place and you don’t feel like they are providing an adequate return, take the time to review your marketing procedures and perhaps explore a different, more effective marketing strategy. Marketing brings in customers and clients; and they are the key to the success of any small business.
Cutting staff hours, reducing your marketing efforts, reducing stock and discontinuing staff training are all quick fix solutions that may do more harm to your business than good as under resourcing in key areas of your business may only contribute to your cash flow problems!
If you would like advice on how you can correctly reduce your expenses, manage your cash flow and grow your business, contact Quinns on 1300 784 667 or fill out our online enquiry form