Spending Money To Make Money

You may have heard the phrase ‘you have to spend money to make money,’ but what areas of business really benefit from putting money into them. Sure, one way or another you are going to have to spend some money before you start to make it, whether that is renting or buying premises, buying stock or taking out adverts in the local paper.

But on top of the necessities, what are the areas that you should really think about putting money into? If you piled thousands of pounds into every possible facet a business could have you would either be taking a huge risk or find yourself bankrupt before you have even opened your doors. So it is therefore important that you are aware of which are the most important areas to focus on.

Much of this will depend on the size of your business, and whether you need offices or workspaces that customers will see or whether you are gifted with anonymity in terms of your workspace. For those with shops or offices that will be visited by potential clients or customers, the first thing that will benefit from extra money spent on it is the design. The more you spend here, the more you are likely to earn – a shop selling all their goods for £1 might get away with a slapdash look, but for those who want to impress a different market then even at the start having the right look and feel to the shop or office will be integral.

Whatever you do, or whatever size your company is, then there is always room to spend money on promotional items. Here, it is not how much you spend, but merely the thought you put into it. If you offer similar things to other companies with nothing to make you stand out you will be spending money to waste money. However, if you do something different, making your promotional products unique or funny and items that are really going to benefit people, or even simply items that people may need to use every day, then you will instantly see customers returning to you due to the strength of your brand recognition.

Also, try to offer not just generic promotional products that everyone might need, but also much more specific ones: for instance mouse mats and mugs are great, but it is also wise for music shops to offer plectrums or printing shops to offer unique printed artwork. By using promotional items that are instantly linked to you then you will establish a much greater link to your company in the customer’s mind.

Finally, advertising is a must. However, be clever about it. Use social networking and sponsorship as well as more traditional routes such as newspaper and radio. Also ensure you are targeting a very specific market and that you are not wasting money advertising in places that your demographic have no links to.

If you spend money in these areas, you will make money, just so long as you do it right. So be specific where and how you spend your money if you want to see the best results possible.

Leave a Comment