My business is not generating enough money. I am reviewing my costs and trying to decide what to cut. What do you recommend? York, NE – TR
The statistics show that when money gets tight a small business first cuts marketing and then cuts staff. These tend to be the highest costs associated within a business and are the first to be cut. Nothing should be more opposite. Why do business owners cut marketing when they are hurting for sales? I am not saying throw more good money after bad money, I am asking do we fully understand why it became bad money? More simply, why isn’t that type of marketing being successful? Or do I have a process in place that puts my employees in the best position possible to succeed? Have we specifically defined our target market? Do our employees fully understand our target market? A marketing plan can help with many of these questions, but a good marketing plan takes research, time, and possibly more money. If you believe you have a good product/service in an area that is not under significant economic duress, I would recommend first to fully analyze your marketing process and then verify that your business systems are established and successful. If not, then adjustments need to be made. Both of these factors have a huge impact on generating money and a consistent, steady follow of future business. Cutting marketing and/or staff is one step closer to putting the candle out permanently.