When Saving Money Can Cost A Lot More

This may sound confusing, but it’s not uncommon to see that saving money can cost a lot more.

When you have a small business, sometimes the expenses can be overwhelming. There are the costs for your stock, supplies and possibly manufacturing, licenses and permits, legal and accounting fees, staff and contractor fees, office equipment, advertising and marketing, website and internet costs, taxes and superannuation expenses… the list goes on and on.

Often many small business owners operate on a tight budget and aim to keep costs affordable for their customers too. This is especially so with the current increasing cost of living and, well, increasing cost of almost everything.

So it’s not surprising then that so many small business owners look for free or low-cost options when it comes to software and tools to help them manage their business. Sometimes this can be worthwhile. Cutting back on expenses during tough times in particular can be necessary.

Why pay hefty monthly subscription for access to software if there’s something that does just as good a job for free?

But other times this sort of thinking ends up costing your business more. Maybe much more!

Consider more than just the financial cost:

Therefore it’s essential that you consider what you use in your business, not just from a software perspective. Look closely at the benefits of investing in the best tools, education, people, and products for your business, rather than looking for the cheapest (perhaps free) options.

A good example that we see weekly, if not daily, is in the database management and marketing software that a small business uses.

It’s no secret that we love, use and recommend Keap (previously Infusionsoft). Keap includes a powerful CRM (Customer Relationship Manager) and sales and marketing automation. This helps your business to collect more leads, convert them into clients, and then turn those clients into repeat clients who recommend you to others too.

But we often see small business owners using other systems simply because they’re cheaper.

Now, if their software of choice can do as good a job as Keap, great! We’re happy for them to use whatever works best for them.

However, they often complain that their system is limited in what it can do and sometimes unreliable. Or other times the tool they’ve chosen to use can kind of do some of the things Keap can, but it doesn’t automate a lot of the processes.

So let me ask you… are you really saving money if you can get the full results you would like? Or if you’re spending more time on the processes? Or if you can’t actually get all the benefits that a higher investment could give you?

What to consider:

As part of your assessment as to the best software for a specific process in your business, make sure you consider all of the costs, not just the monetary costs.

  • Can this tool do everything you need it to do?
  • Does it have limitations that you can pay to ‘unlock’?
  • Will this tool take up more of your time or save you time?
  • Is this tool likely to improve your business’ efficiency?
  • Does this tool integrate smoothly with other tools or systems you may want it to sync with?
  • If it doesn’t integrate directly with other relevant systems or tools, can you do this via a third-party tool such as Zapier?
  • Will this tool help you to keep up with your competitors? Or better still, will it help you to stand out above your competition?
  • Can this tool help increase your profits?
  • Can this tool help decrease other expenses?
  • Will this tool help your customers?
  • By using this tool, will your staff be able to perform their work easier, quicker or with less stress?

Once you’ve weighed up all of the costs and all of the savings – not just the financial costs or savings – you’ll find the tool that suits your business best. Not surprisingly to us, we usually see that this isn’t necessarily the cheapest tool.

And after looking at all the costs, you'll most likely agree that sometimes, just focusing on saving money can cost a lot more!

But the benefits are well worth the extra financial investment and it generally pays for itself in improved efficiencies, productivity, customer relations and increased sales.

If you’re interested in learning more about how we can help automate your business processes, book a free, no obligation call with us.

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