The efficiency of marketing has been proven time and again. One only needs to take a look at HubSpot’s compilation of relevant marketing statistics to see how effective it can be. However, the latest Kabbage Report shows that small businesses make the smallest investment in marketing. This means that all the opportunities offered by this technique are lost to them. This might be one of the causes of high startup failure rates.
That same survey indicates that not investing in marketing sooner is one of the main regrets for small business owners. This single change can make the difference between a business that stays afloat and one that fails.
However, many business owners openly admit that it’s the high cost of marketing that pushes them away from launching professional campaigns. This is a valid concern as good advertisement has never been cheap. Opportunities offered by digital marketing are more affordable and therefore better suited for small business. But even those can be expensive. Therefore, a small business of today should look into ways to cut their other main operating costs to free up more money to invest in good marketing.
How a Small Business Can Save Money to Invest in Marketing: 3 Ideas
Use a Professional Employer Organization (PEO)
PEOs can help small businesses hire more employees and attract highly skilled professionals that will regularly be out of a small company’s ability to afford. These organizations employ staff and then ‘rent’ the professionals out to their clients. This allows the small company to cut down on employee taxes.
One of the main advantages of PEOs that enable them to attract highly skilled professionals even to small startups is that they offer employee benefits. One will need to conduct a PEO comparison to choose the service best compatible with the business. There are over 700 PEOs in the US today and each is extremely versatile. Having a team of experienced and talented pros will make the company more profitable, thus increasing the funds available for marketing.
The investment in technology is a major expanse and going paperless won’t cut it down to free up some funds right away. However, this is an exceptional long-term strategy that will allow the business to reduce expenses on office supplies and some others.
Going paperless will also make the company more efficient, secure, and productive overall. This happens due to the use of specialized software that handles financial transactions, bookkeeping, reports, inventory, etc. Any company that wants to be successful today will need to use these solutions anyway. Therefore, going completely paperless from the start removes some expenses that are a waste of money in the long run.
One can also use this information in their marketing campaign as a paperless business is more eco-friendly, If the brand is building a positive image by actively supporting ‘green’ projects, this addition to the company’s profile will be a huge bonus.
Rent instead of buying
Small businesses that want to save money should carefully consider what they truly need to purchase and what they can rent or lease. This mainly concerns transport, equipment, and office/production space.
This choice will depend on the business itself as there are many individual details that need to be considered. The rule of thumb is to rent everything that isn’t a top priority. At the least, businesses should consider a lease with a chance to purchase in the future. This will free up some funds to run a big marketing campaign to announce the launch.