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As a young business owner, figuring out the best way to spend your money business-wise can be a bit of a dilemma. Even people that go to the best business schools on the planet still find it overwhelming weaving through the number of required expenses that come with starting a business, and then deciphering which costs are a priority and which ones are unnecessary. This is because this kind of decision-making expertise only comes with years of experience—something that you may not likely have with a new business.
Especially in the field service industry, what you do with your money in a young business or a startup is a key determinant of the eventual success or failure of the business. Thus, in this post, we will be providing you with 5 areas to prioritize spending your money for the best results.
Before we delve into this key content, it is important to state that young business owners must be definitive about what field service business they are running. Is it a construction company or a landscaping company? If you will be working in construction, will you be doing general exterior work or specializing in roofing, windows, doors, or the like? You must give all of this ample thought and come to solid conclusions because the answers will help you further define where exactly you need to be channeling your money.
Now, let’s look at what you should be spending your money on to take your business to the next level.
There is an erroneous belief that spending money on market research is simply paying to learn things that you have known all along. But as stated, that’s just a belief. As a young business owner, there is so much that you do not know about your target market. In fact, the reason why many startups fail is that they misread market demand.
Market research helps you fully understand your target market and what makes them click so that you are able to present your service to them in the best way possible. Indeed, there is a lot of research information that is readily available on the internet for free. So all you may really need to invest in market research in terms of resources is a little bit of money and as much time as needed.
Tools and Technology
If you own a construction company, you will certainly need the right equipment in order to run your business successfully. The same applies to any other field service business. The right tools are essential to build the productivity of your young business, reduce the risk of errors, and give your startup a competitive edge in the industry.
The right technology is also highly essential. An excellent example is an immense value that incorporating a time tracking solution with your field operations yields to your young business. With Atto, for example, the solution enables you to keep track of your employees both in and out of the office, improve your accuracy in giving quotes and estimates, see the status of projects at a glance, and so much more!
A Strong Team
You can never run a field service business alone. There are way too many responsibilities and requirements for a successful field service business to be a one-man show, let alone for a new business. Thus, a key investment that you should make as a young business owner is building a strong team around you. Hiring the wrong people can drive your business to its demise. Therefore, you must take care to employ the right people with the right skillsets to realize your vision for your young business, brimming with new ideas, and that will save your business a lot of time when it comes to division of labor.
You need to also take into account the costs that accompany taking on new hands such as paid leave, health insurance, and other expenses.
Besides the dedicated field technicians for your line of business, here is a shortlist of other professionals that are essential to any young business:
a. Accountant: An accountant is essential to aid you in building a strong financial plan (to give your young business a solid foundation to grow on), keeping your business spending in check, and helping you do your taxes so that you do not get fined!
b. Legal advisor: A legal advisor helps to guarantee that your young business does not violate any laws—which can be ruinous for a new company.
c. Customer service representative(s): Customer service is essential to enable customer retention. Your reps also play a vital role in representing and relaying your business image to your clients.
Branding and Marketing
These are the essentials that will get you your very first clients and boost your sales as time goes on. Great branding will give your young business an identity and make it stand out in the industry. Effective marketing will enable your young business to drive sales and expand its reach. And the best part? Both do not cost a fortune in today’s business economy!
Insurance is necessary to protect every part of your young business, from the employees to the equipment. Types of insurance differ based on the kind of field service businesses run. And while insurance can be pricey, you will be grateful for the investment in the long run as field service businesses very often run a ton of risks and fall into a lot of liability.
It goes without saying that sometimes you need to spend money to make money. Whichever aspect of your business you decide to invest in, make sure to have a strong action plan in place. This means that you should know what to invest in, when, and how to get the most out of your investment, and consider any other contributing factors. When using a time tracking solution like Atto, for example, some common steps include researching the product, purchasing it, introducing your employees to it, incorporating it into daily work, and maintaining regular usage and updates.
With the above tips in your arsenal, you’re ready to plan out your next moves and grow your business.