All businesses need to improve to be more profitable. But these improvements would most likely cost you some money. So how do you know if your purchase will be meaningful for your business?
Here are 4 questions to ask before making a business purchase.
How Will This Help My Business Grow?
Who doesn’t want a thriving future for their business? You might think of buying a set of beautiful china for your restaurant. Or maybe an accent piece at the centre of your store.
Ask yourself, how will the purchase help my business grow? And the answer will differ for different people. Some might forego the purchase because it’s not necessary. Imagine a Chinese restaurant having a medieval statue as its attraction. It’s cool, but for what?
For some restaurants, it would make sense because that would make a buzz on social media. And it can rake in more sales.
Courses and training is another example. Will the information you and your staff will learn from the course help your business grow? Yes, there is a lot of valuable information out there. But, you don’t need every single one.
Evaluate its usefulness and assess if it will multiply your business in the years ahead.
Will this Add to a Better Experience for Your Customers?
You might have heard the saying, “Don’t Sell Products. Sell Experiences.” It’s pretty accurate to be competitive in today’s business world.
Ever experienced excellent service from a business that you’ve shared willingly with all the people you knew would benefit? You want to ask this yourself when you purchase items for your business.
Yes, that material might be more expensive than the basic ones, but that subtle touch does matter.
And it’s not exclusive to physical items. It can be with hiring people as well. Should you employ social media managers for a better online presence and campaigns? Is a customer service representative worth it to answer customer concerns and inquiries?
Improving the customer experience should be a significant consideration in your purchases.
How Much Does It Cost?
Ironically, cost should not be the main reason for your purchase. Something on sale doesn’t exactly mean you need it now. Also, how does the quality fare for your liking?
Your cash flow is the lifeblood of your business. It’s right to be mindful of your expenditures. But not to the point of becoming a cheapskate.
Again, remember what it’s for and how your business will improve from the purchase. And then decide accordingly.
Is There An Alternative?
But even if we want the best and most expensive one, the reality is we can’t afford everything instantly. There will be priorities for different phases of our business.
So the last consideration is, is there an alternative?
If that statue would cost thousands of dollars, can there be an alternative that will still make your restaurant a go-to destination? How about a total renovation to transform your restaurant into an IG-worthy spot instead?
If you need employees for customer service, should you favour remote workers over office-based ones? Sometimes, the cheaper option isn’t necessarily the one with lower quality, depending on your goals.
So know and learn what your audience wants. Run your imagination and creativity. Mindfully grow your business one purchase at a time.