Because of Arizona’s limited financing options for businesses, brand owners need to be strategically allocating their money and resources into the most cost-effective avenues with the highest returns on investments.
That sounds nice and all, but what does that really mean?
How can you maximize employee productivity? Would you benefit from purchasing powerful software to automate certain responsibilities, and how do you know which software will really be worth the money? How often should you revisit your budget to evaluate what is and isn’t working? These are all questions a new business owner in Phoenix needs to be considering.
Acknowledge that Time is Money
A savvy business owner needs to not just budget their finances, but to budget their time as well. For example, investing in automating certain processes could make a huge impact on an employee’s day-to-day efficiency, leaving them more time to focus on strategy development or even sales. Taking the time to research different software and its features before committing to a purchase could be a lengthy progress, but could potentially save you hours on the dollar in the long run.
On a similar note, automating too many processes without carefully considering your needs could hurt you – for example, to what extent does your company rely on quality human interaction for success? Replacing a personable front desk agent with an automated AI phone answering system may seem off-putting if you’re running a bed and breakfast that advertises cozy and welcoming services.
“Phoenix is such a welcoming environment for the solopreneur, with a variety of start-up community events and networking opportunities. There is no lack of resources for brand new businesses, and Redemption Market, our ethical boutique, has received so much support as a woman-owned business in the Valley. Possibly the biggest challenge in Phoenix is having to choose among so many offerings!”
– Rhonda LaBatt, owner of Redemption Market (Phoenix, AZ)
Closely Examine Trends in Arizona for Potential Risks to Your Business
Like all major cities, Phoenix, has specific quirks and characteristics that make it unique from others. Unless you’ve just recently moved to Phoenix (or live under a rock), many of these qualities are obviously apparent. Still, it is best practice to consider how Phoenix’s distinguishing traits could affect your strategy for business growth.
Here are just a few points you may want to consider about Arizona that could potentially impact your business:
- How will the heat affect the way you conduct your business? Phoenix can get unbearably hot, especially during the summer. Restaurants with outdoor patios need to have cooling water mists to allow patrons to stay comfortable in the desert heat. Commercial properties or company vehicles may benefit from powerful window tinting services to reduce costs on air conditioning bills.
- How heavily do you rely on the patronage of snowbirds? Snowbirds are people who temporarily migrate to Arizona during the winter to escape the snow from another state. Many of these individuals are retired seniors who will rent or own a home in Arizona, and snowbird season is typically from November to April. Come springtime, these snowbirds leave Arizona and go back to their homes. If you are relying on the business snowbirds can bring you, keep in mind that their patronage is only seasonal and plan your cash flow accordingly.
- Currently, Phoenix’s public transportation system is poor at best. If you are coming from cities with highly developed subway systems such as New York or Boston, this could be a big change. Not having a vehicle in Phoenix is going to be a huge inconvenience, and spending money on rideshare services like Uber and Lyft can be costly in the long term. Expect your customers and employees in Phoenix to be using cars as their main mode of transportation, and consider private parking features when purchasing property.
There are certainly more distinguishing features of Arizona that could impact your business, so research accordingly so that you know what to expect.
It was my husband’s idea to buy a business, since he felt confident I had a pretty good understanding of both sales and operations. I’ve always loved fitness, so a gym seemed like a perfect fit. My first year in business was a STRUGGLE. I didn’t realize how much I had to learn.
– Laurel Roach, owner of TriFit Wellness (Phoenix, AZ)