Every penny saved is every penny earned, and this holds truer for those engaged in a business. While it’s commendable to try to save up as much as you can, especially for those with very limited capital, there is a big difference between being cost efficient and being cheap.
Here are four areas in a business you should never ever try to be cheap at. The effects of doing so will cost you more in the long run.
1. Not Hiring Competitive Employees for Much Less
There is a popular saying that goes: only hire people more brilliant than you are. While it’s perfectly fine to cut costs on things like stationary and supplies, never try to haggle down your employees. A brilliant underpaid worker will never work up to his full potential and a lesser qualified person willing to take cheaper wages won’t amount too much either.
If you want top quality output, put together a top quality workforce. It may cost you a lot more, but it will be worth it.
2. Sticking with An Underwhelming Logo
If more people only knew the real value of a logo and branding in a business. A logo serves as your visual representation, your avatar in the physical and online world. Think about all the iconic logos in the world. Do you think an amateur just learning how to do Photoshop hastily created any of them? It’s one of the first things people see and the impression it creates is usually lasting.
Be prepared to spring a little for your logo design. If you care about your business, you must care about your branding.
3. Being Careless with Your Equipment
Never let the care and maintenance of your machines, and operating equipment slide. It’s easy to overlook a tiny glitch but if you don’t get on top of the situation, it might lead to bigger headaches later on and will cost more money plus a delay in production. Contact a reputable company that offers heavy equipment repair in your area at the first sign of trouble and leave it to the professionals.
4. Your Products
In today’s very competitive marketplace, people are caring more about quality than being cheap. You’ll probably get a lot of orders if your product is very cheap but if your homemade mushroom burger patties taste more like cardboard, then you can expect not one of those customers will care to buy from you again. Invest in the best quality raw materials or ingredients that you can afford even if it will cost you more. The finished product will be worth it.
There you go, the four things you cannot be a cheapskate in. While it may tempt you to try to cut costs at every corner, remember that the future of your business depends on the decisions you make today. For financial decisions, be thrifty, but be wise.