A large percentage of small business owners will spend a lot of time trying to find ways to cut the fat and keep costs down. Of course, it is essential that you find ways to save on the cost of doing business, but there are three areas you should never, ever skimp on. Skimping on these three areas can really backfire and cost you a lot more in the end.
Customer Service
One of the best ways to ensure you keep your customers coming back is to provide excellent customer service. A recent survey found that about 32% of customers who wind up switching brands do so because they were unhappy with their customer service experience. Other surveys indicate that consumers can forgive errors and more if the customer service is attentive and willing to solve a problem.
You should never skimp when it comes to customer service. Hire the right talent, and make sure you go above and beyond to ensure that your customers are satisfied with their experience. Word of mouth is still one of the most important ways to generate new customers. Keeping your customers happy by investing in your customer service reps is critical to ensuring that word of mouth advertising is working for your business.
Investing in training for your customer service representatives will pay you back with happy customers that keep coming back and that spread the word about your business. Training and investing in highly qualified representatives for your business will come with a nice ROI.
Security
In today’s climate, security is essential for any business. Both physical security and cyber security considerations are imperative. You do not want to skimp on costs when it comes to protecting your business. Investing in a good security system that includes security cameras for your business’s physical security is one of the most effective burglary crime deterrents.
You either want to connect with a professional commercial alarm company, which you can learn more about if you click here, or you can take the DIY path, but in no case should you consider not having the right security equipment to protect your business. Thieves would love the opportunity to find your business unprotected. You work too hard to build your business to allow someone to walk out with your inventory and equipment.
Of course, equally important is cyber security. Ensuring your data is protected is as important as ensuring that your physical equipment and inventory are protected. Furthermore, even implementing visitor management compliance software can help ensure that all your visitors (and their information) remain safe while they’re on your premises. This is why you should never skimp on security – it’s one of the most important factors within a business.
Technology
No matter what industry your business is in, technology is likely a big part of what you do. Whether you use tech for communication, to manage your inventory, to produce your products, or for any other reasons, this is an area you do not want to skimp on. Every business needs reliable internet service, reliable hardware, data storage solutions, and more. By 2023, about two-thirds of the world population will have internet access, according to Cisco’s Annual Internet Report. Being reliably connected is a must for any business.
When you make the decision to pay less for technology upfront to try to save money, you can actually wind up paying far more. Latency problems, the inability to upgrade when you need to, paying out of pocket for repairs are all possible when you try to cut corners on your technology costs. It is better you should pay more upfront and worry less. Don’t skimp on your technology.
Cut the Fat Elsewhere
Trying to keep costs down is important for any small business owner, but making sure you are making the right cuts is absolutely necessary to the success of your business. Other areas where you should proceed with caution when you are considering making budget cuts. For example, your marketing budget. Sure, you can reel in some of the expenses but the fact is, marketing is what brings your customers to your door.
Ultimately, there are ways you can save when it comes to the cost of doing business, but there are some areas that you just have to invest in to keep your business growing. Move with caution when you are looking for savings.