Does Your Business Have a Spending Strategy?
Pain management specialist Dr. Jordan Sudberg explains how a business can have a spending strategy, which may be important for businesses that don’t start with enough capital or have limited access to loans.
“Many small businesses don’t start with enough money to hire the right employees,” Sudberg says. “One needs to have a spending strategy and avoid wasting resources on things that don’t add value.”
Sudberg says “spending strategy” is important for businesses to develop to spend money on what is necessary for their daily operations. Businesses that have a spending strategy can cut down costs and will have money left over to invest in growth, Sudberg explains.
One of the biggest problems for businesses is that they don’t have enough money, which prevents them from securing loans and hiring the right employees, Sudberg says.
“We see a lot of businesses that have grown by leveraging their own money and resources,” he says. “There are ways to encourage growth without taking out loans.”
Sudberg recommends talking to your employees and determining if there are any new responsibilities they should take on. Your team may have a greater work capacity than you previously thought, Sudberg says.
He recommends getting new customers before expanding the business or hiring more employees.
“We know many businesses who have been successful by building their marketing, but without a real strategy,” he says. “The biggest mistake is to hire employees too soon.”
Sudberg urges businesses to have a spending strategy that moves forward at the same pace as their growth. Don’t overextend, Sudberg says. He points out that they need to invest in their businesses and vision, but giving up everything else is not worth it.
Sudberg recommends that business owners look at their budgets, determine what is necessary for their operations, and cut anything else. He says one of the biggest challenges he sees with small businesses is that they are not looking carefully at how they spend money.
“Spending strategy should be considered even with small businesses,” he says. “Many businesses have been successful by spending prudently, but we don’t see many companies who have a healthy strategy in place.”
Sudberg says it is difficult to work with a business with no spending strategy and good employees. He said it’s difficult to invest in their employees’ growth because the company may not have access to capital for growth or does not want to take on loans.
“It’s important to create a spending strategy and look at certain things versus just doing it all,” Sudberg says. “The small businesses that don’t have a spending strategy may lack the right employees.”
Sudberg explains that if small businesses don’t have enough money to pay their employees, they will run into problems with their employees. The business may be unable to provide benefits or bonuses, as they have less money to send out.
“They may feel like they’re not getting anything out of their job,” Sudberg says. “They feel like they’re working hard, but it doesn’t seem worth it.”
Dr. Jordan Sudberg says that another problem with businesses that don’t have a spending strategy is that the business won’t be able to attract the right employees. He says many workers want to work for businesses with great visions and employers willing to invest in them.
“We’ve seen many businesses who have done great things by investing in their employees,” Sudberg says. “It’s not necessarily about paying a higher salary, but about having a good spending strategy.”
The spending strategy may not be the primary means of attracting the best employees, but they should be a part of it, Sudberg says. He points out that the employees will have bigger expectations of the business if they know what to expect from the employer.