If the spending is to improve service, reliability, or anything pertaining to the actual product, then the answer is generally yes
That depends on what spending money means. If the spending is to improve service, reliability, or anything pertaining to the actual product, then the answer is generally yes.
In the service industry, the staff is the greatest asset a company can have, and adding staff to ensure that service is better is often well worth it. You certainly need to spend to get the best people that will help your business make money. Investing in them is so important, though that doesn’t always mean salaries. Investment can include training, work-life balance, or creating a relaxed atmosphere.
Spending on marketing and branding is a different story. This is industry specific; certain industries need this expenditure to increase sales. While branding is usually important, it’s hard to translate branding into direct dollars earned. It does, however, give the product or business name recognition, which can increase revenues.
—Azi Mindick, CPA, Chief Financial Officer, Riverside Abstract
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