» Concerned Business Owner asks
I hear some commentators on TV saying that we are coming out of the recession. Others are saying no, things are terrible. Here’s my question: should we upgrade our technology, or invest in marketing instead?
We’ve been fortunate in this recession and have the funds. But if the recession is going to linger I’d rather spend that money on marketing to make sure our revenues remain steady and do not drop. If we’re coming out of the recession then I’d like to upgrade my tech so that we can expand capacity to deal with immediate growth.
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I’m not a business or marketing expert like some of the other experts on this site, but if I were you, I’d maintain the marketing and start planning the tech upgrade. Obviously, I’m assuming you don’t already have the tech upgrade completely planned out yet. If that’s the case, I think it could take several months to thoroughly investigate all your options and plan well. Whatever it is you want to upgrade, make sure you take a look at several competitors, and take the time to request evaluations units/copies. While you are doing your comparative analysis of your options, you may be able to get a better gauge on the economy. Also, remember that a tech upgrade usually impacts a large number of people (sometimes all) in an organization. You may have to include training and a lot of communication in your upgrade plan. And for now, don’t trust those commentators on TV any more than you trust your local meteorologist.
You don’t ever want to stop marketing. That’s the engine that keeps your pipeline full. Should you invest in the technology? It depends.
- Will the technology you are considering help your cash flow by optimizing practices or people in your organization and saving you money?
- If you don’t get the technology now, will it put you behind when the recession eases?
- How does your cash flow forecast look for the next six months? Can your business maintain good cash flow based on what you know today if you purchase the new technology?
More questions than answers, but hopefully some food for thought to help you make your decision. And frankly, I wouldn’t base my decision on what TV commentators are saying. I’d base it on the cold, hard facts of my business performance.
Good luck!
It’s great to that you are thriving during this recession – congratulations! I don’t know what role technology plays in your business so it’s difficult to make an educated recommendation. I suggest you evaluate your options based on ROI. Will a tech upgrade bring in more customers than additional marketing will? Will the lack of a tech upgrade cause you to lose customers? Do the math and plan accordingly.