When starting a new business, there is a real need to keep costs under control. It’s definitely important to watch where every single penny goes, because there are so many unforeseen costs involved in the early days of any business operation. It makes good economic sense to save money in smart ways in order to increase your chances of staying in business over the long term. No one will argue with this.
With that said, there is a major exception to this rule of keeping costs low. When it comes to the products and services that you are selling, they should always be made with high quality standards using good materials. Otherwise, you run the risk of getting a bad reputation for shoddy products among the buying public. We’ve found that by keeping our furniture high quality, we’ve earned good reports and excellent word-of-mouth advertising. (In fact, in the early days of our business, at least a quarter of our customers were referred to us.) Here’s an example.
We sold a porch swing to a customer employed by Ace hardware. One day at work, he was helping one of his own customers who happened to mention that he was in the market for a porch swing and was thinking about building it himself. My customer told his customer that he’d likely get a better porch swing if he let me build it, because he was so happy with the work I’d done for him. That conversation netted me another sale.
Of course, you need to find a balance between the two and learn how to cut costs without sacrificing quality. Once you do so, you’ll be walking a steady road towards profitability and a good reputation. Here is a video that offers great advice from the perspective of many representatives of different types of businesses: