Running a business can mean dozens of expenses every month, and the temptation to cut corners in certain areas can be overwhelming. When you’re trying to maximize your profits and reduce your costs, you might want to consider these five items as off-limits. Cutting corners on any one of these five items will only serve to damage your business efforts and likely cost you more in the future. Keep reading to learn more about which five things you shouldn’t cut corners on.
1. POS System
Your POS system should be a top priority for your business, especially if you’re running a retail or e-commerce business. The POS system you use can help keep accurate inventory, process payments, interact with and market to customers, organize customer information, and so much more. This all-in-one tool is something you’ll want to spend some money on to acquire good software/hardware.
Point of sale software comes in many varieties, but the fact is, you get what you pay for with this tool. Buying cheaper software will only leave you feeling frustrated with errors and problems down the road. You’ll want to acquire a POS system from a reputable company like Vend HQ or Square POS, so you’re certain your software is backed by customer service and quality craftsmanship.
Once you’ve got a good POS system in your arsenal, you’ll find yourself more organized, better connected to your customers, and attracting new customers with your expanded payment options. Having a POS system is truly an underestimated necessity for any business and not something you’ll want to cheap out on. Spend a little money and get your business the right tool for the job.
2. Marketing
How do you reach your customers and expand to new customers? Marketing. Marketing should be one of the main expenses of your business, as marketing efforts are what keep the customers coming back. If you’re going the cheap route with your marketing efforts, you’re probably not noticing much of a return on your investment.
Marketing determines the level of success your business will achieve. The best companies out there spend a good portion of their income (some up to 50%) on their marketing efforts. While you certainly need to spend money on marketing, you also don’t want to just throw money at the problem. Be sure you’ve created an effective plan to ensure an ROI (return on investment) for your marketing efforts. If you’re spending money in the wrong places, it’s just as bad as not spending it at all!
3. Research
What better way to improve your marketing than by performing research? Whether you’re researching the customers you want to serve, the competition you’re hoping to beat, or the market you’re operating in, knowledge is a tool that has no price tag on it. The more information you can compile, the better off you’ll be.
You can pay for AI systems that will perform these tasks for you and organize the information for easy interpretation. AI systems are making a serious impact on the business world, and are only going to improve as the years go by. The technology will be well worth the cost when all of the info you needed is compiled automatically.
4. Your Website
A good website is the backbone of any successful brand and something you don’t want to cut corners on. While there may be plenty of DIY website builders out there like Wix, these tools aren’t going to give you the level of customization and professionalism you’ll find with an experienced web developer. You simply can’t beat the years of experience and creativity one of these professionals can bring to the table.
Since your website is usually the landing place for new customers, you want a customer that looks good, feels responsive, and operates well to create an excellent first impression. If your website is full of errors, hard to navigate, or saturated with unnecessary graphics and colors, the customer may disengage completely; costing you a precious sale.
Web design and development is an expense that you will be absolutely grateful for when the site starts turning results. Customers will appreciate the effort as well!
5. Legality and Tax Prep
Starting up your business can require some legal paperwork and guidance, and when you finally file your first year’s taxes, a tax professional. Many business owners attempt the cheaper route and file the paperwork or prepare their taxes themselves, but this is unwise and generally not suggested. Unless you’re a legal or tax professional, there’s always a chance you can miss an important filing or deadline, or file your taxes incorrectly.
When it comes to legal and tax compliance, paying for a professional to handle it is your best bet. You don’t want to accidentally miss a filing with the IRS!
