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PGE Solutions The Business Boggle: Facilities VS. Employees - PGE Solutions

business boggle

The Business Boggle: Facilities VS. Employees

Written by pgesolutions on . Posted in Blogs

Entering the world of business and entrepreneurship is no easy squeeze. At the beginning, you will find yourself losing more than your earnings, which may seem quite frustrating. But as soon as the returns of your investment start to kick in, you will come to realize how the hard parts made it worth it. Once your business has reached its point of stability, uphill is the only way you can go.

However, as enticing as the idea sounds, you must never be complacent. The trick to sustaining any business is to always bring something new to the table. You can observe that even established companies like McDonald’s and Coke are always out to offer new experiences to their customers. It’s a continuous nurturing process that you will be able to handle with ease over time. But before you get there, you still have a number of factors to consider such as where you should be investing more when it comes to your business: facilities or employees?

Businesses have different needs. In order to come to terms as to which of these factors should have more bearing in terms of investment, you just need to recognize the business type you have and industry you’re in.

Product-based Businesses

A product-based business is one that gives more due attention to production and end products. Businesses like these should be investing more on their facilities rather than their employees because:

  • Your product is the face of your company. Your customers are loyal to you and your brand because they have taken a liking to the product you offer. If you do not invest in the facilities that will ensure your product’s quality, you will lose leverage over your competitors one by one.
  • These end products you manufacture have a short product cycle. These types of businesses have a duty to stay intact with their inventory, as their consumers have a way of repeating their purchase in a certain manner.

Service-based Businesses

Service-based businesses are those such as ad agencies and web development companies. They are those companies wherein the sales driver is no longer a product, but a service. And because their service is what sells, investing in their people is the more favorable option.

  • Your people will serve as the backbone of your company, as they will be the service providers for you to gain income. It is thus essential that you provide them with not only a healthy working environment, but proper training as well.
  • When you fail to give your employees what is due to them, chances are they will find someone who will. This is especially true for those employees who make an effort to perform beyond expectation. Make it a point to provide them with the right appraisal even on a yearly basis.


So basically, there is no general answer as to which you should invest in more. It all depends upon the business type you are managing. For product-based businesses, it’s all about taking your facilities to a whole new level. But for those who are service-based, it’d be best to treat your employees justly and fairly. Say to no to overworking them, and underpaying them.

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