Most business owners think that doing everything they can to minimize their expenses is the right approach. This may work well to maximize profits most of the time, but it is also fair to say that, sometimes, companies can save money by spending more money.

Below, you will find some common examples of times your business may be able to save money by spending money:

1. Hiring

A lot of companies try to spend as little money on hiring, both in terms of finding employees and paying them, as possible. This might save money in the short term, but it may not be the smartest choice in the long term. Did you know the cost of a failed hire is almost three times the paid salary? Finding the right employees has never been more vital, and you can save money by using talent advisory services when recruiting.

Why? Because your employees are the core of your company. The better your employees are, the more successful your business will be. By spending more money on recruiting and paying employees, you are more likely to attract the best people who will enhance your business and allow you to make far more money going forward. It really is that simple.

2. Cleaning

Cleansing is one of those areas that many business owners think they can cut corners on. This is really not the case. Cleaning is really important from a health and safety perspective. Whether it’s using restaurant hood cleaning services to ensure your kitchen is hygienic and unlikely to set fire or using regular cleaners to keep your bathrooms sparkling to avoid infections and illnesses being passed on, cleaning can save you a whole lot of money in terms of fear sick days and fewer lawsuits, so absolutely do not skimp on it.

3. Manufacturing equipment

Buying cheaper manufacturing equipment might seem like a good way to keep your overheads down, but if that machinery is less reliable and less efficient than a higher-quality version, that might not be the case.

Before you buy equipment, you need to factor in not only the sticker price but also the cost of ongoing repairs and maintenance as well as how productive said equipment will enable you to be. Quite often, you will find that spending a bit more on a more expensive piece of equipment will save you time and money in the future.

4. Advertising

Advertising is a very clear example of how spending money can save you money in the future. If you invest in effective advertising campaigns right from the off, your business and branding will instantly become well known by your target audience, which means you may not have to work quite as hard or spend as much money on marketing in the future. You will also likely increase your revenue, which is, of course, really important if you want your business to be a big success.

If you invest more money in these important areas of your business, then you will almost certainly save more money down the line and make bigger profits in the long term too. It might seem counterintuitive, but it really can be the case that you have to speculate to accumulate in business!

Keep track of business expenses in the Key2Success Planner: