3 Areas of Business You Should Invest in Now to Save Money Later
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What if I told you that you could easily save money in your business by spending money? Chances are you’d think I was crazy. How in the world does spending money help you to save money? No, I’m not saying that you should go out and simply splurge on anything you can think of and hope it will save you a buck or two in the future. What I am saying is that by learning how to make smart investments as it pertains to your business now, can, in the long run, save money later. Notice I said, “smart investments.”
What do I mean by smart investments? To make an investment of any kind, whether for your business, the stock market, or your home, you must first do effective research to ensure you’re making an informed decision. You need to determine overall costs (now and in the future) and more importantly the significance (benefits) of the particular investment to your current circumstances.
Now that you have a better understanding of what a smart investment might be that could save you money in the long run, let’s go over three areas of business to invest in now to save money later:
Your staff is the driving force behind your business and its overall success. They work diligently to provide outstanding services that are ultimately passed down to your customers. Working with staff that is less than qualified slows down business performance (productivity) and increases expenditures. Seeing as how your staff is one of your biggest assets in business, you want to do what you can to continually enhance their abilities to provide the best work possible. Here are some ways in which you can invest in your staff:
- Wellness – Employee absenteeism is one of the biggest ways for companies to lose money. In fact, Investopedia’s article suggests that on average, the cost of one hourly employee being out of the office (unplanned) could cost as much as $3600. While sometimes “call outs” are unavoidable, what if you could do something as an employer to minimize the need? Wellness programs are one way in which you could invest in your employees now and save money later. Whether you decide to offer discounted memberships to a local gym, incorporate free annual health screenings, or even offer weight management classes for staff, it can do wonders to improving their overall health and save you a few thousand dollars per year.
- Development – Aside from investing in the well-being of your staff, another way to save money is to invest in the overall development of their careers. When you consider the fact that business trends and practices are always changing, it is imperative to keep up with the times. As your staff learns new concepts through trainings and further education, they are able to utilize those skills within your organization. This of course helps to improve productivity which ultimately saves money on operational costs.
Whether you’re an ecommerce business or you have a physical location, the need for highly improved technologies is constant. Don’t believe me? Imagine trying to be a successful business with dated computers, software, and other technologies? Imagine if you had dated virus protection software and your company system was breached? How much money would that cost you? How much time would it waste? Or even more so, how many customers would you lose? Modern technology essentially helps to streamline business practices which essentially improve productivity and save you money. Here are a few technologies you might consider investing in now to save money later:
- Data/Virus Protection – Data means everything to a business. Whether its company or customer information, protecting it is of the utmost importance. Investing in new software that provides added layers of protection can minimize the potential of your data being breached. Trend Micro, points out that protection products such as a secure server can provide several layers of protection across various platforms.
- Other Technologies – Any technology that will streamline a business practice is worth investing in. For instance, upgrading from a Microsoft excel spreadsheet for bookkeeping services to a more comprehensive software that not only keeps account of your balances and expenditures, but gives you estimates on taxes, and allows you to also conduct payroll and invoices from the same system is a great way to keep track of all your business finances and assures you don’t miss a thing (which could cost you big time)
Without your customers or clients, there would be no business – which is why it is important to always invest in things that will improve your customer’s relationships. A happy customer will not only return for business but will also share their great experience with others. There are several ways in which you could improve upon the relationships you have with your customers, and ideally, investing in the improvement of your staff as well as modern technologies allow you to provide better service which ultimately saves you money in the long run. Healthy, knowledgeable staff can provide quality customer service and satisfy your customer’s needs. While advancements in technology will help to streamline business practices which can help you to provide quality products or services expeditiously.
That’s it. By investing in your employee’s and technology, you’re ultimately investing in the overall quality of your customer relationships which are important to the success of your business. Remember, when considering investments you want to look at the bigger picture. First assess what the issue is, which ways you can improve this issue, how much the resolution will cost you now and in the future, and essentially make an informed decision on whether or not the investment is worth it. Keeping all of this in mind will help you to be a more productive and successful business, while also saving you money.
Photo courtesy of: Negativespace
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