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Running a profitable business isn’t all about saving money and making cutbacks. There are times when splurging can be good for business - by being prepared to invest more money upfront into certain areas of your business, you can make more money in the long run. Below are a few good times to spend a little extra on your business.
Core Technology
Your ‘core technology’ includes any software or machinery that your business cannot function without. You shouldn’t be skimping on this tech - it’s much better to splurge on this tech so that you’re getting something that’s high quality and robust.
An example could be a coffee machine in a coffee bar. Your business depends on this machine, so it’s worth investing in something that’s going to last. Things like a telephone and printer are less important in a coffee bar and are the type of tech you can skimp on.
Employee Benefits
A good employee benefit package will help you to attract the right talent as well as keeping employees loyal. Think about what perks you can offer employees beyond a wage - this could include health insurance, flexible working hours, ample paid absence, paid lunches or a company car.
There are companies that can handle benefit management including health insurance and more. It could be worth using one of these companies when setting up a benefit package.
Customer Rewards
On top of rewarding your employees, consider how you can reward your customers. Customer rewards are a great way to encourage customer loyalty. This could include investing in a loyalty point scheme or sending gifts and discounts to select customers.
The bigger the rewards, the happier your customers will be and the more likely they are to stay loyal. News of these rewards could help you to build new customers.
Digital Marketing
Marketing is essential for helping to attract customers. Nowadays, digital marketing is the most effective form of marketing. It’s possible to do a lot of DIY digital marketing to save money such as building your own website or using organic social media marketing tactics - however, if you really want to encourage a boost in customers, you’ll need to splurge.
Consider paying someone to update your website and splash out on some SEO. Pay for adverts on Google and Facebook to help get your product out there. You could even try investing in some video adverts - these can be very effective at drawing in customers.
Security
Small businesses are some of the biggest victims of burglary and cybercrime. Consequently, security is something you definitely do not want to skimp out on.
Avoid disaster by investing in anti-burglary devices and cybersecurity measures. It may even be worth getting advice from security advisers to help you strengthen your company security. Many medium-sized companies are now starting to outsource permanent IT support so that they can act quickly in the event of a cyberattack. Cloud-based security cameras can meanwhile allow you to constantly monitor your premises from any location.