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Why do business owners throw money away?

Published Wednesday, December 23, 2020

Why do businesses continue to spend money on activities which offer little or no return?  Is there a better option?

In a previous article I talked about how 85% of business owners had not updated their website in over three years. I also concluded this was down to one thing. Most business owners see a website as an on-line brochure.

This is something which is glaringly obvious if you spend any time browsing business websites in your area. It is also something which you cannot blame business owners for. Websites are not simple! They require a variety of skills and getting them right takes time and money - which a lot of business owners do not have. Or do they?

If you consider a small business with a turnover of let's say 100k. They could take 1% of the turnover and set this aside for generating new business - so a £1000 annual budget. A business owner is then got to ask themselves.  "How do I make the most of the my £1000?"

Now they could spend it on:
- 10,000 printed leaflets
- 12 press releases
- 12 months of advertising
- Membership to business networking groups

Or they could spend it on:
- Creating 52+ articles for their website
- Optimising their website or enhancing their internet presence

- Building a social media presence on LinkedIn or Facebook

What's the difference between these sets of options?
The majority of business owners UNDERSTAND the first set!

They will have spent money on these types of things before. They are tangible. Minimal risk. Telling themselves "If I get one customer from this advert it will pay for itself".

Even if they have seen very little success from them - they stick with what they know.

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