When it comes to running a business, you’re always going to face questions about spending. Which of your expenses are part of the cost of doing business, and which ones are superfluous and wasteful? Certainly, it can be hard to tell sometimes. We’re not going to pretend to have the answers to all your questions, but we can certainly set you straight when it comes to spending on meetings and incentives. The data is there. The research has been done. Spending on meetings, incentives and business travel consistently sees a remarkable ROI.
It’s a phenomenal financial investment. If you are looking for a strong ROI when you do business, then it’s hard to do better than meetings and incentives. According to an Oxford Economics study, “Detailed statistical modeling over 18 years and 14 industries indicates that for every dollar invested in business travel, U.S. companies have experienced a $9.50 return in terms of revenue.” Moreover, it’s companies that spent more on business travel and meetings, not less, that recovered better and faster from the economic downturn.
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If you’re wondering how that return is achieved, look no further than avoiding lost opportunity costs. That is to say, think of all the networking that will never happen if you don’t produce meetings and incentives. Getting your important clients together with a chance to wow them is worth whatever you spend to make it happen. Motivating your top employees to be their best always pays dividends. Suffice it to say, producing meetings and incentives is the cost of doing business, and your business will reap the rewards.
The numbers are there, so there’s no reason to hide from reality. Spending on meetings and incentives will lead to big returns if you do it the right way. What are you waiting for?