I just learned a very important lesson about spending habits in a time of recession from someone. He is a US sales expert and his postulations made me realize of all the practicality of his ideas.
The said expert is no other than Neil Rackham, who has been responsible of one of the most extensive study of sales calls. He pointed out that during recession times, people do not chase after cheap wares; rather, they go after reliable and durable products. During these hard times, the concern is not anymore on how much are we spending but whether everything is worth the cost. His postulations are practical to apply even in our own small businesses, which tell us to optimise our revenues by minimising our costs without compromising the necessary factors. Here’s a few:
Get rid of your obsolete computer
Using a computer for more than 3 years already is not a good way of minimising your cost. You are taking a great risk if you do. If your obsolete computer breaks down in the middle of completing a major project, you might risk incurring a detrimental effect on your business. Go get one good unit of computer.
Upgrade your image
You have to put up a very good business image to your potential and current clients. You can start by securing impeccable and well designed business cards, pamphlets and websites. This is not so hard to do these days with the advent of technology, it does not even require a huge amount of money for you to employ this, so why not do it anyway?
When your image projects success, then success will indeed follow wherever you may go.
Dress up your office with the right hardware
Buy the best furniture in town. Furnish your office because if you plan on putting so many hours within its confines, then you better dress it up the way you want to make it liveable. Purchase the most comfortable chair you can find. Do not go cheap on chairs, as you will be seating on it for hours. Buy the ones that could really provide you the most comfort. There are so many ways to buy a good product without having to pay its full market price. Shop around.
You might also want to consider putting up a good lighting system to create a work-conducive environment.
Do not go cheap on labour
If you intend of seeing your business flourish with a solid reputation, there’s no way you could do it at the expense of your employees. Cheap salaries produce cheap work. You need not be unnecessarily extravagant, but at least be fair. Pay in proportion to the kind of work you delegate. Find the best employee you could afford, and then start treading your way to success.
Use advances in technology to your advantage
Nowadays there are so much technological advances that could really help you cut down cost on your business. You can always use it to your distinct advantage to maximise your profits.
If you have anything to share about practical business cost savings, please let us hear it out.