Posted by on Dec 13, 2017 in Business | 0 questions

In the super competitive and fast paced world of business in the 21st century, entrepreneurs and businesses are best on all sides by challenges that could impede or even torpedo their business. Every business, however well run and unique, is buffeted by the winds of capricious economy and rapidly changing market conditions.

Today businesses rise or fall by their ability to remain agile and adapt to fluctuations in market conditions. In order to do this, conventional wisdom dictates that overheads must be kept to a minimum while important areas of investment should be identified and protected. Depending on the nature of your business, however, it’s sometimes difficult to ascertain where best to cut down costs and where best to lavish their spending.


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Indeed, a cash strapped and wet behind the ears entrepreneur may think that the key to staying afloat lies in making spending cuts to all aspects of their operation, but they’d be wrong…

Osbornomics: A cautionary tale

As a reaction to the global financial crisis of 2008, former UK chancellor George Osborne tried to save money by making savage and indiscriminate cuts to public spending and national infrastructure. Rather than facilitating economic recovery, this strategy actually hindered it. This is because Osborne demonstrated a lack of awareness of fiscal multipliers. He failed to realise that some areas of spending generated more economic activity than they cost.

The same is true of businesses. While there are some areas in which spending can be unnecessary, there are some in which no entrepreneur can afford to be a penny pincher, even if they’re keeping a close eye on their overheads…

Equipment and materials

If you manufacture a product then that product is the lifeblood of your business. You live or die by that product’s reputation. Thus, cutting corners when it comes to the materials with which you produce it or the equipment you use to make it can seriously compromise your product and thusly your reputation as a business. Check out https://www.millscnc.co.uk/ and you’ll find a variety of equipment built with precision and reliability in mind. Compromise on either of these and you could end up with faulty products that can do irrevocable damage to your brand.

Marketing

Plenty of digitally savvy and generally younger entrepreneurs assume that they’re able to take care of the digital marketing arm of their business themselves. While they may have the skills, knowledge and talent (as well as unparalleled knowledge of what makes their business great), they rarely have the time. It’s only a matter of time before your attention is spread too thin and your marketing strategy flounders. And a poor campaign is almost worse than no campaign. Since marketing costs have some of the best ROI of any business costs, outsourcing your marketing to a talented agency is money well spent.

Training and development

Even the most competent entrepreneur can’t achieve greatness alone, they need to lean on capable and reliable employees. But take those employees for granted and they’ll soon start looking for a better deal elsewhere.

The savvy entrepreneur invests in their employees’ training and development to ensure that not only are they able to do their job to the best of their ability, they’re loyal to the company and the brand because they’ve helped to shape and enhance their career.