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3 Areas Where Entrepreneurs Can’t Afford To Be Penny Pinchers

Contributory

by | Jun 6, 2018

Running a business in the 21st century is a bold move and it’s one that no entrepreneur makes lightly or without serious thought. Sure, they’re casting aside jobs in which they were bored, understimulated, undervalued or simply miserable, but in doing so they open themselves up to enormous risks. They have forfeited their right to a reliable stream of income and they also risk losing their work / life balances and burning out. Moreover, in a fast paced and increasingly competitive marketplace, entrepreneurs know that even relatively successful SMEs stand on a knife edge. Over invest here or under invest there and their business could be forever consigned to the annals of the good ideas that never quite made it.

Since 8 out of 10 businesses fail within 18 months their CEOs are understandably cautious. They don’t want to risk losing everything by being frivolous with their money and investing in overheads which could drain their profit margins. However, it’s also part of an entrepreneur’s mandate to determine where their overheads should be reduce and where they should double down because of their prospective ROI or how they contribute to the integrity of their brand. Here are 3 areas where even the shrewdest entrepreneurs cannot afford to be penny pinchers.

Cyber security

Whether you manage your own IT department or outsource to a third party, your digital security must be taken extremely seriously. Getting a Network Security Services provider to carry out a thorough audit of your existing infrastructure could be a real eye opener. They may be able to identify areas of weakness which can be easily exploited by a determined cyber criminal. A security breach could be devastating not only to your bottom line but to your business’ reputation (would you want to do business with a company with infamously lax security). Thus, every dollar spent on security redundancies and cyber insurance is well worth the overhead cost.

Website and copy

Your website is the lens through which legions of prospective leads will first view your business and hopefully be converted into loyal repeat customers and brand advocates. In order to do this effectively, however, you must ensure that you secure the services of a talented web designer. Nothing screams ‘amateur’ like a poorly designed website and even if users aren’t able to identify the schoolboy errors that make your site look poor they’ll at least be aware of them on a subconscious level. Your website must also be responsive and well optimized for mobile consumption. A wait of just 7 seconds can increase you bounce rate by up to 35%.

As well as the look and feel of the website itself, you must also invest in a team of good quality copywriters who will be able to provide you with compelling homepage copy as well as a steady stream of content which will give your business an engaging voice while organically boosting your SEO.

Marketing

Speaking of SEO, there’s rarely a bad penny to be made from marketing costs. Marketing costs have an average return:investment ratio of 5:1 so while you may pay a sizeable overhead to get on the books of a reputable agency they will pay for themselves in terms of the exposure that they bring to your brand and the new business which they generate.

xoxo, Karmen K

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