As a bootstrapped business you have to be incredibly careful what you do with your limited money resources, and this does mean scrimping and saving in some areas. Until you’re turning a decent profit and making enough money to get by it means being savvy in some places- however there are a few areas that you shouldn’t try to make savings on. These things are fundamental to the success of your business, and trying to save money here is likely to result in your business failing before you’ve even got started. Here are three examples.
Having a professional company website built doesn’t come cheap, but it’s such a worthwhile investment for your business. Even if you’re a local company who sells goods and services from a store rather than online, your website will still be the first thing many customers see of your business. From printing shops to launderettes to cafes, retail stores and more, many people will still be looking at reviews before deciding to shop with your business it won’t be solely based on foot traffic. Therefore you still need a good online presence, it shows customers you’re a trustworthy and legitimate business, makes you easy to contact and gives information about all of your services 24/7. If you sell products online and trade predominantly through your site then it goes without saying that you need a decent one. Allocate a good chunk of your budget to getting this right, an amateur looking site will do nothing but put customers off from the get-go and so it makes no sense to try and make savings here.
Another area you shouldn’t try making cutbacks on is your promotion and marketing. This is the way you get your company’s name out there to potential customers, it’s not as simple as ‘build it and they will come.’ The last thing you want is to set up an incredible business, and it to fail simply because people didn’t know you exist. You should choose marketing strategies that are both up to date (such as social media marketing that has higher conversion rates than almost any other type) and relevant for your business. For example, if you’re in the industrial sector you would choose an industrial marketing company like IndustrialIdeas.com.au. Try and make savings here and your business might fail before it’s even had chance to get going since you weren’t able to drum up enough custom.
Your Product or Services
Your products or services are what your business is all about, and so you need these to be the star of the show. Therefore you shouldn’t be making cutbacks which are going to jeopardise the quality of these things. Using cheaper materials in manufacturing for example could render your product cheap and unappealing. Using less expensive software which prevents your workers doing their job and delivering a good service will again reflect badly on your business. Whatever it is you’re selling needs to be a priority, so don’t make cutbacks here.
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