Investing in your business can be a tricky proposition: how do you know when and were to invest to grow your business?
Every day we are faced with business decisions: how to spend our time, energy, and money in our business. There are countless opportunities, programs, and people who can help us to grow our businesses.
Then there are what I consider necessities, like setting up your business foundation, hiring an accountant, and other foundational pieces like your website and your e-mail list.
So the question becomes how can you make decisions that will serve you and your business in the long run?
Investing In Your Business Explained in Under 6 Minutes
The Time & Money Scale
There are two main investments that you can make to grow your business: time and money.
If you’re starting your business on the side and you still have a full-time job, you might have more money and less time.
On the other hand you might be in the opposite situation where you have a lot of free time, but not a lot of money to get your business started up.
The solution? Use what you have. If you have time but not money, get your hands on as many free resources as you can and take massive action to figure out what works to grow your business.
If you have money, then it makes sense to hire help, pay for educational materials that will fast track your success, and get you started without investing a ton of time.
Beware: Shiny Objects May Be Sharp
I want to address shiny object syndrome. I have a lot of experience with it, and I’m not ashamed of it.
The Internet is full of shiny objects, and depending on where you live you may face shiny objects every time you go out your door too (hello NYC!).
There is absolutely no shortage of information products, software tools, and coaching programs or providers.
It’s really easy to hop from idea to idea, and project to project without ever getting the results that you were looking for.
That’s why we recommend being strategic when it comes to making buying decisions, and planning out your year for your business.
When Should You Start Investing In Your Business?
Should you invest money into your business if it’s not yet making a profit?
This is a tough one because I’ve seen it over and over: when someone puts money into their business, they make it back.
Obviously not all business investments are made equal. If you’re putting money into your business to buy uniforms for your dog to become your mascot… well that might not result in more revenue. Then again, you never know.
The point I’m trying to make though is that when you put your money where your mouth is, you’re making a commitment.
Sometimes the thing that you’re buying isn’t in itself what gets you the results, but the way that it gets you motivated to take more action, might.
That being said, I highly recommend following these recommendations before investing money in your business:
- When it comes to information products, buy them only when they align with the goals you’ve set out for yourself (don’t get sidetracked by shiny objects)
- Hire a coach or consultant when you know you need accountability and help to take all the information and know-how you have and turn it into actionable items that you actually do.
- Check in with yourself before you buy a new piece of software, tool, or plugin… Sometimes we get trigger happy (myself included!) when we see a gadget that could make our lives easier. Make sure it aligns with your goals and business strategy first!
When you know what your numbers are, you can make better hiring decisions. If you know exactly what you need to make in a given month to keep the doors open, pay rent or buy food, then you’ll also have a better idea of what you can afford to hire out.
One of the first things that make sense to invest in are things that you don’t have the skills or time to do.
That might mean technical stuff you can’t figure out on your own, high end design, accounting, copywriting, or help keeping everything organized.
In the end, if you know what you’re making on an hourly or monthly basis you’ll be able to see the payoff in hiring help to get these aspects of your business handled for you.
What Investments Have You Happily Made?
I’d love for you to leave a comment below and share any good (or bad) investments that you’ve made. We learn from each other, so be generous with your advice!