In order to make money, you have to spend money. This is why even huge, multi-national companies can operate for years without ever making a profit, especially if they’re a loss leader who aims to take majority control of a market and then raise prices from there.
Of course, spending money isn’t a bad thing. Most often it’s entirely necessary. After all, you couldn’t have a happy, healthy, productive and innovative workforce, the lifeblood of any business, without paying adequate salaries that keep your people around and motivated.
That said, wasting money is certainly a bad idea. That’s why many companies will often restructure their operations or work on cost-cutting measures when downsizing, be that considering layoffs, opting for new suppliers, or even working with more favorable investors.
However, just like with spending money, you have to understand the value of saving money and when doing so is a bad idea. For example, if you save money by switching to a supplier with an almost identical product at a cheaper price? That could be a good idea. But if you have to downgrade the notable quality of your supplies to save money? Those savings might not be worth it.
So, instead of considering where to cut costs, let’s take the opposing view and consider four commercial costs you should never cut. This way, you can better plan the parameters of your saving strategy:
Quality Assurance Measures
Quality control or assurance is the mechanism by which you not only ensure high standards depending on your product sold or service rendered but also how you remain compliant with essential regulations. For example, the safety underpinning your manufacturing processes and chemical implements must be considered. That might also mean investing in essential equipment such as quality ductless fume hoods for the safe handling of sensitive materials. If you cut back on this approach without a scaled restructuring, it can have a prolonged knock-on effect.
Cybersecurity may seem like something you could opt into in the past, but now it’s an essential and pressing consideration necessary for good corporate planning. This is where opting for managed IT services that will include excellent security packages and server protections as part of their baseline package is so important to measure. Make sure the services rendered are modular depending on need, scaled to your business, and help staff stay on the same page as new threats develop. It will be worth its weight in gold and potentially protect you from a difficult attack or unidentified data theft.
Marketing & Brand Building Efforts
Sure, you can limit a marketing budget, but you must never rid your brand of it outright. Without continual growth in exposing your presence, you can easily be forgotten about in today’s market. Working on your SEO rankings through the use of an outsourced firm, developing a consistent approach to marketing in your local community, and allowing customers to become your biggest ambassadors through referral programs are all worthwhile measures. Sure, you can limit expenditure, but never diminish your need for outreach. Another brand just like yours will take that place if you fail to do so.
With this advice, you’re certain to manage the commercial costs you should never cut.