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’ll be forced to make decisions monthly, weekly, and often daily about how you’re going to invest in your business. It’s easy to fall into the pattern of avoiding spending money until you make more.
What’s the smart 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.
Oftentimes, solopreneurs end up half-assing 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, spend unnecessary money, and end 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’re heartbroken about their financial decisions.
Don’t invest 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 decisions based on lack or fear. Wait until you feel grounded and then 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. 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’re 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 it’d take you to do it.
- You’ve come to the edge of your business growth box. Hire consultants, coaches, and mentors to support you to reach the BIG dream. Sometimes the investment for these services will push you to the edge, but saying yes will require you to focus 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, branding expert, marketing team, 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 your dream business and soul vision. 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.
Be excited to invest in the growth of your company. Be excited about how that new system, product, or person will give you peace of mind. They will help leverage your time and outreach to your ideal target market.
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’ll be difficult to rise into a higher income bracket.