As a small wellness business, every dollar you get counts. If you spend more on activities that don’t impact your business, your bottom line will suffer. You’ll also have less capital to help you achieve your business goals.
Studies reveal that over 80% of small businesses fail due to poor cash flow management.1 This is mainly caused by overspending, leaving you less capital for the things that matter, including equipment, employment, and marketing budget.
Have You Fallen Prey to these 3 Overspending Traps?
When you’re starting out, the line between what’s important and what you can do without is very thin. For instance, yes, you need the technological equipment, but is your business ready for the latest upgrade? The same also applies to subscriptions; some of them are important, but there’s no point in purchasing subscriptions that you’ll never use.
Hiring Excess Staff
The accumulative hiring costs can be astronomical. In fact, a study revealed that the average cost of hiring one employee is $4,129.2. This is inclusive of the onboarding costs, employee development programs, etc. You also have to manage payroll and all associated costs, as well as employee benefits.
When all these costs add up, they can eat into your bottom line! When you’re starting up your wellness center, only hire the employees you need and make the best use of them. For instance, instead of hiring cleaners, you could ask your employees to tidy up your premises during the slow hours.
Running Non-Targeted Marketing Campaigns
Here’s the secret to running marketing campaigns; a one-size-fits-all approach doesn’t work. You need to find a strategy that works for your business needs. This is why it’s so easy to fall into the marketing overspending trap.
Before you allocate your marketing budget, first conduct audience research. Find out which marketing campaign your preferred clients are most likely to engage with and then focus on it. For instance, if you’re targeting millennials, they’re very active on social media. It then makes sense to prioritize social media ads as opposed to offline marketing strategies.
Getting the Right Office Space
Most wellness business owners make the mistake of purchasing very expensive and luxurious office spaces. While this is likely to draw in more clients, it will also eat into your bottom line. When you’re starting out, get a reasonably priced and strategically located office space. This will save you lots of money and allow you to expand in the future when your bank accounts can handle it.
Avoid the Above Overspending Traps and Enhance Business Growth
It’s so easy to fall into the overspending trap. For example, even though you require sufficient office space, it’s unwise to get a large office before your wellness center expands. You should also avoid having excess employees when you’re starting out and fully utilize the ones you have without overworking them. Most importantly, when you’re running marketing campaigns, ensure you use the targeting features available. This will result in a higher return on investment.
Links to Sources Used
- How This Cash Collector Turns Outdated Accounts Into Cash Quickly – https://www.forbes.com/sites/melissahouston/2020/12/22/how-this-cash-collector-turns-outdated-accounts-into-cash-quickly/
- Tech tools that can help you land the perfect job – https://www.cnbc.com/2017/04/10/tech-tools-that-can-help-you-land-the-perfect-job.html