5 Questions to Ask Yourself before Burning Cash Just spending lots of money won't guarantee a good return unless you invest it wisely!
By Aniketh Jain
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In today's ultra- competitive environment where every business is progressively battling against each other to be at the helm of affairs, you should certainly spend your cash wisely in trade as it is the only ingredient that can strongly support you in this endeavour.
Pouring tonnes of money in a business without realising or predicting future gains can lead you on the stairway to setbacks in business and completely dagger your success. So, it is vital that you intelligently ask a few questions to yourself to evaluate the success ratio and identify pros & cons, before burning cash.
At present, while you may think of multiple questions, let me take you through the 5 most prominent ones:
Are you ready for an immediate expansion after your first success?
You may have a fabulous expansion plan but is it the right time? Being a new-age business leader, this question must have drifted across your mind many times.
Even if you have conquered a particular market, you should be more realistic about what your company can handle next. Do you have the right team in place? Are they ready to handle additional workload? Do you have a set of loyal customers who would have your back? Will such expansion aid you in meeting your goals? Will evolving market demographics favour this expansion? These are a few doubts that you should positively consider, to weigh if you are ready for an expansion or not. Alongside, you should also learn if there is even a need for an immediate expansion or can it be put on halt.
Is it important to build an efficient IT infrastructure to emerge as a technology driven company?
Technology and innovation is the foundation of any tech- driven company. Henceforth, the question is- can you still strive without a supportive IT Team?
An in- house IT division with creative and innovative minds can always back you up and regularly enhance your product or service with their constant support. So, what better than having an exclusiveIT division that can efficiently cater to all your tech needs and streamline your tech-trajectory? Today, burning cash to build such a fecund set- up is definitely a recipe of success.
Is it wise to invest in hiring a multi- level workforce at an initial stage?
Multi- level workforce is a benefit that can systematise your business course. However today, more than a hierarchy you need a handful of right people who can diligently and intelligently work towards a common goal.
Right people have the strength and potential to spur your business growth at an express way. These are talented, passionate, interested and enthusiastic people who can powerfully run the show on your behalf. So, ensure that you hire such proficiencyin business as the need is to engage a brilliant mind and not to burn cash in recruitingseparate specialists at multiple levels.
Is it beneficial to outsource a part of your business to somebody who has expertise in the field or is it just an extra cost?
Striving against all odds is a lifetime commitment which takes time, strategic planning and continuous determination that can produce high percentage of repeat business. Today, because of multiple negatives such as low- visibility, insufficient capital, sunk cost, unfavourable & unpredictable market conditions, changing customers and their increasingly evolving demands & expectations, you may not be able to smoothly elevate all aspects of your business.
In such a scenario, it is recommended that you outsource a part of your business that needs extra care and attention, to somebody with expertise in the field. This will remarkably control the attitudes and issues within that part of business and avert illimpacts on your business.
Do you intend to invest in a comprehensive marketing plan that can well establish your brand at the market forefront?
A marketing plan has the power to make you meet potential customers, locally and globally; an integral requirement of any business.Today, you cannot get off the ground unless you have a comprehensive marketing plan by-our-side.
Investing in a marketing strategy can significantly establish your brand at the market forefront, fuel your growth and ensure continued survival. It is the only respite in tough times that can efficiently open new doors to opportunities in tradeand help you break out from a bend in sales. So, ensure that it's never neglected or given a gap.
Conclusion
It is imperative that you carefully deep- dive into all relevant aspects of business to ponder the prerequisite for success before using up all your cash resources, capital.This practice will not only assist you to save on your swelling expenses but will also resurrect more predictabilities for you in business.
