When you set out with a goal of growing your business it’s usually fueled by a desire to make more money. Some of us are fueled by making a difference in the world with our products and services. I personally want to do both.
No matter what motivates you to grow your biz, you will be forced to make decisions monthly, weekly and often daily about how you are going to invest in your business. I know some of you try to avoid spending money until you make more.
What’s the correct formula for spending your hard earned dollars?
It all depends on your emotional tolerance for spending money and the desire for truly growing your business.
Often times, solopreneurs end up half-assing (sorry, I don’t know a better way of explaining it) their systems and marketing because they try to do everything themselves and aren’t willing to pay someone who knows how to do the job correctly.
I know other business owners who hire too many people, too quickly, spending unnecessary money and ending up regretting their decisions.
I’m by no means an expert in the finance department, however, I’m the one that ends up helping people clean up their messes after they are heartbroken about their financial decisions.
Don’t spend when…
- You feel rushed about a decision. If you’re in a pinch and need to hire staff quick…don’t. Hiring an assistant, webmaster, copywriter, or salesperson should be done when you have the emotional and time bandwidth to do it with care. Hiring the wrong company, coach or staff will hurt you financially, mentally, and physically. In the end, you’ll cause yourself more work.
- You’re in a crisis. When emotions run high and you want a solution fast, you’ll make a decision based on lack or fear. Wait until you feel grounded and brainstorm solutions. Choose the one that you feel will give both short and long term results that support your business plan.
- You feel like you might be missing the bus. You never miss an opportunity. There are many buses and you don’t have to hop on the same one as your buddies if your gut is telling you no.
Do spend when…
- You need a system to automate. Making your business more efficient equals better customer service, quality services and products, more time out of the office and higher profits.
- You need expertise on a topic outside of your sweet spot. If you are an artist, for goodness sake, don’t spend your time learning how to set up a shopping cart to sell your art. A shopping cart wiz can implement strategies and systems you wouldn’t even think to use. And they’d do it in a fraction of the time you can. They will not only save you time and money, they will put money in your pocket.
- You’ve come to the edge of your business growth box. Hire consultants, coaches and mentors to push you beyond your little comfy zone. Sometimes the cost of these services will push you to the edge, but saying yes will require that you be focused on how much it will grow your company.
When you invest any amount of money in growing your business, be very intentional about the results that you want before you hand over your credit card. You never ever want to feel buyer’s remorse. Get 100% behind your purchase before you do it.
Every time I’ve spent money that felt like a stretch, I’ve reaped huge benefits. My business manager, coach, and ecommerce system all had my heart pumping when I first heard the price. I breathed deeply and had to think about what would happen if I didn’t invest that money.
If you don’t invest in upgrading your business what will change? Most likely nothing. And that’s the point. Being frugal is appropriate in many cases. But not when it holds you back from dialing in your business; be smart about who and what you choose. But if you’re cheap, it’ll be hard to grow a profit. You’ll attract customers and clients who are just like you.
Do-it-yourselfers don’t run businesses; they work very hard at keeping afloat. Your relationship with wealth needs to be healthy so you can allow money to flow in and out. If you grip too tightly to what you have, it will be difficult to rise into a higher income bracket.
Be excited to invest in the growth of your company. Be excited about how that new system, product or person will give to you peace of mind. They will help leverage your time and outreach to your ideal target market.