Do You Have To Spend Money To Make Money?

I recently spoke with a franchise company thatnot a wasted expense!
provides cleaning services. This enterprise has been inAs for your situation, advertising can produce amazing
business for about 18 months. The company has tenresults and great revenue and profits --- for the
employees, 115 clients and produces revenue of overADVERTISER! Unfortunately, the dollars that you
$12,000 per month. Unfortunately, the companyspend in advertising, you will never see again! That
advertising expenses total of $5,000 every month! Asgoes into the advertiser's pockets and not your own!
a result, company profit only totals a little under tenThere is a major change happening in America. Why
percent. The owner wants to increase its client basedo you think that local newspapers and the major
and attract and retain my best employees.broadcast channels are losing money and firing
This reminds me of the old saying: "That you have toemployees? Many companies are not seeing a
spend money to make money." Do entrepreneurspositive return on investment (ROI) using traditional
have to spend money to make money?methods.
Well, some believe that there are only two ways toThey are getting wiser with their dollars. You should
increase your profits. Either you reduce your expensestoo! Companies that have satisfied clients and
or increase your sales! Believe it or not, you could docustomers, should recognize what a valuable asset
both! Some entrepreneurs think that you only have onethat this can be! That's GOLD! Start there! Chances
choice - spend money! Most new owners make theare that your satisfied clients know other prospects
same mistake when starting a business. They thinkthat you could convert to your service! That is where
that the best way to build a business is to spendyou should invest your money! Get closer to your
money. They think that to make money, you mustclients! What is a referral worth to you? How many
spend money! They are wrong.referrals did you get last month? What is your referral
Thinking that it is an investment, some people spend asystem? Learn to ask for referrals!
lot of money in the lead generation activities. SomeStop wasting your dollars on advertising! Begin to think
owners will buy a yellow pages ad. Others willof other ways to attract the right clients and
purchase an ad in the living section of the localcustomers!
newspaper. Also, you will discover that some peopleGet profitable! Be more productive and efficient!
will buy a direct-mail list of 1000 prospects or post aEmployees will stay with a successful company.
gigantic billboard over a major highway.Retention will increase and employee satisfaction will
For example, I know of one business that spent $improve! People will leave their existing jobs and look
20,000 on one direct-mail campaign! They are stillfor better opportunity with your company.
waiting by the phone for all the excited new prospectsAs you generate more dollars, you will have enough
to call them and hand over their hard earned money! Itmoney to invest in your employees! This could result in
did not happen! Another example is a local restaurantoffering health insurance, company training, retirement
that spends $2,000 each month for a billboard!plan etc. Investing in your employees will produce a
Business has improved and the owner is thrilled. But,better return on your investment. This will have a
when I asked her to prove that her sales came frompositive impact on company and likely result in better
the billboard ad, she could not!employee retention and satisfaction. Save money and
Always test and measure your advertising efforts,invest in your company! Do not give it away!
processes, procedures, and systems. Always verifyDo you have make spend money to make money?
your results! Before spending a lot of money, makeNo! Business owners just have to become wiser with
sure that it is a smart investment of your dollars andtheir money! That is the bottom line!