At the beginning of each month I receive a great newsletter from Resnick, Amsterdam, Leschner, an accounting firm in Bluebell, PA. There is always something interesting in their newsletter and this short article from the September newsletter, piqued my interest.
“Attempting to reduce expenses can be either wise or foolish, depending upon where you make the cuts. Eliminating costs that are crucial to attracting and retaining consumers is a direct route to failure, but spending less on wasteful areas without losing sales is a thrifty way of increasing profit.
You can save plenty of cash by paying less for marketing, but spending too little prevents people from finding your business. Trust the statistics about how shoppers in this century typically conduct online investigation of purchase options. In some markets, little risk is involved in reducing or even canceling your advertising in the newspaper, phone book and broadcasting.
Meanwhile, use some of those savings to revitalize your website. Obtain some consulting on search engine optimization (SEO). Hire a freelancer to create content for your website, write a blog, issue press releases and deliver social media messages. Set your advertising budget for next year with a focus on online marketing. Even if you only use word-of-mouth marketing to obtain sales, spending on your Web presence helps turn prospects into committed buyers.
Secondly, remember that employees are the most important assets of most businesses. Staff members enjoy perks, but prefer job security far more. The cost of small perks such as free food, gym membership and attending conferences can add up quickly. Concentrate your spending on workers by annually granting cost-of-living increases in wages and providing a top-quality health insurance plan. Smart spending decisions will reduce your costs and simultaneously improve the quality of your business.”
I couldn’t have said it better myself.
A tip of the glass from me to you!