The cost of doing nothing is a little-discussed topic in business, yet it’s one of the most likely causes for businesses failing to reach their full commercial potential. The reason it does not get fully discussed is that few people in business get taken to task for not spending money, whilst spending money in the wrong place can be seen as a big failure. But what if the damage was done by not spending money far outweighs the damage to a business of spending the money unwisely? Companies like Preston Technical, who are the UK leading Adhesive tape converter understand the importance of investing in technology, sales, and marketing and can assign significant business gains to the investment made.
We see companies not investing when they should time and time again where businesses fail to invest to increase this year’s figures at the expense of the longer-term health of the company. Project management companies specialize in analyzing the full cost of investment projects and determining the return on investment and can help all kinds of businesses ranging from bamboo toilet rolls suppliers to plastic storage box manufacturers
With UK business run by accountants rather than marketers, it’s a problem that you see repeated again and again in big as well as small companies. It’s a problem that goes too unreported in our opinion. Digital marketing agencies are often at loggerheads with accountants over such issues
The issue is that examples like this happen repeatably and the problem lies in how the figures are reported. A reduction in spend against last year Is easy to explain, but a reduction in sales can be blamed on many factors and rarely lands at the door of the finance department who took the decision to reduce the spend.
Let’s look at a typical example. A Till Roll Supplier in the UK might decide not to spend £10,000 on a new marketing initiative but defer until the next quarter. A delay of 12 weeks. If that marketing initiative typically results in extra sales of £6,000 per month, then delaying the initiative by 12 weeks does not save the company £10,000. It costs the company £72,000 in lost sales that will go to a competitor. The problem is the £10,000 is a known “saving” but the £72,000 revenue is invisible. It doesn’t matter whether you are a Labelmate Label Dispensers supplier or a manufacturer of commercial mats , the results are the same