Markets are competitive, war-like environments where larger businesses try to push new firms around. If you want to fend off the pressure from these larger businesses, you’ll have to make smart spending decisions.
However, new businesses are often small, and most of their capital is used to launch the company. In this case, having a sustainable saving-investment ratio is essential, especially amid the current economic recession. Here are some things you should spend on or save for to improve your odds of survival in the market.
Economics 101 may teach you that all businesses pursue profit—and that’s not entirely wrong, but it is a little reductive. A more nuanced take is that a business’s primary objective is to survive in the market.
Having cash on hand and in the bank keeps your business’s assets liquid, and affords it a ton of flexibility. Consequently, you should invest in products that make the most profit, as opposed to those that offer the highest profit rate.
For example, a 100% profit rate doesn’t mean much if the total profit is $100. Compare this to a product that gives you a 10% profit rate, where the total profit is $2,000, in the same financial period.
Research and Development
During trying economic times, such as during the current pandemic, many businesses begin to cut back on production and focus on remaining afloat. If you’ve come up with a plan to keep your business afloat, this would be the best time to gain an edge in the market.
Investing in research and development can net you production methods and tools that let you cut costs. If you can cut costs, you can cut prices, possibly to the point that your competitors will also be forced to, perhaps unsustainably, lower their prices.
This could give you some sway over market conditions, and make it easier to compete by making it harder for others to compete.
You may be producing a great product and have a very user-friendly website that’s full of good content. If you are, Google and other search engines will do their part in navigating traffic your way.
However, if you’re not marketing these things, you’re limiting your business’s potential. Developing a robust marketing campaign and a weighty social media presence extends your business’s reach to many more prospective customers and clients.
However, you may be worried about the costs. Spending doesn’t come easily to a small business, especially amid trying economic conditions. Fortunately, you can get help without breaking the bank. Contact us at Mo’ Media Mo’ Revenue for affordable social media management and search engine optimization services. Get in touch, and we’ll help you bolster your image, consumer base, website traffic, and market share.