No matter what stage your business is in, effectively managing costs is a critical part of driving growth.
Just when you think you’ve got your expenses under control, a new invoice appears in your inbox, or a line item in your monthly budget is 30% higher than originally expected.
For many of us, it’s challenging to know how to balance these costs between the daily demands of running the business. Here are 5 important cost areas that deserve your attention today and will actually help scale your business.
1. Cost of Customer Acquisition
It’s crucial to understand how much money your business invests for each new customer making a purchase. Often shortened to CPA (cost per acquisition) or COCA (cost of customer acquisition), a business can track its progress over time by how much more efficiently it can acquire new customers. This may be as granular as tracking a Google Adwords spend at the keyword level, or as simple as tracking how many customers came into your store to redeem a limited-¬time offer you printed on double-¬sided postcards. It’s important to diversify your acquisition strategy to limit the risk in your business. Sources for new customers can become more expensive over time, or deteriorate in quality of leads, or completely dry up. Be prepared for the unexpected hiccups by consistently exploring new ways to attract customers.
2. Offline Marketing Budget
[Investing in an offline branding strategy may initially sound like it belongs only in the plans of massive global companies like Coca-Cola or Apple, but it is relevant for a company of any size. It can also be accomplished with a modest budget. Offline branding can be as simple as 4 medium banners with your company logo, contact information and tagline on them or placing a custom lawn sign at every job site your business works. The key is tracking the purchases your business makes every year to increase its visibility. By financially committing to making your business more visible in 2015, you are investing in its growth and dedicating resources to continually generating new customers.