Are you investing in your business?
I’m not just talking about time. Of course you’re investing time, right? If you’re not, then you’re likely not very successful.
But what about money? Are you investing money into your business?
Over the past decade, I’ve worked with hundreds of small and medium-size business owners. Some have been startups with funding while others have had large marketing and PR budgets.
But I’m not talking about those businesses. I’m talking about small business owners. I’m talking about corporate trainers, business and marketing coaches, personal development experts and other service providers. I’m talking about clients whose businesses are generating less than $150,000 per year. In other words – small businesses.
It’s been amazing to me how often small business clients aren’t willing to invest in their own business. Sure, they might buy productivity or marketing products or hire out projects like website design. But they seldom have a longer-term plan beyond the project scope. And seldom do they consider an ongoing marketing or promotion budget for the growth of their business.
What gives? How can you grow a business if you’re unwilling to promote it? How can you increase your revenue if you don’t invest some dollars into marketing? I’m not talking about thousands upon thousands of dollars each month. I’m talking a few hundred or thousand or whatever fits your budget.
If there’s one thing I’ve learned it’s this – if you’re unwilling to invest in your own business, then why should anyone else? In other words, if you don’t spend money to promote your products or services, why should anyone spend money on them – if they can find you?
So, are you investing in your business? How? What’s your budget and how are you using it? And if you’re not, why not. Let’s talk about it.
(note: image from sash / slash on Flickr)
My name is Dawud Miracle and I'm a 
20 responses so far ↓
so what do you do when you don’t have money to invest? i suppose this is greater than that. having the right attitude towards your own business is crucial? i think if you have only attitude, and not money yet, let it be the right attitude. do what you can with what you’ve got, right?
I wrote an article a few days ago with a similar slant called,
11 Great Investments -
http://www.spinningsilkmultime.....vestments/
My inspiration was all the Wall Street panic going on last week and while I did touch on investing in ways to be more productive my post was more of personal nature with a few things applying to business as well.
You make a really good point about if you don’t invest in your own business, why should others. It is important to remember however that one can invest with more than just money. One can also invest with time, community service, networking and education by reading every day and experimenting with new methods.
I think you are quite right about this issue. I too am too cheap to put money in my online business as the internet is supposed to be free. But I guess that although this might work in separate an isolated cases, it will not be the case for the majority.
Olivier.
you started this post with the single greatest investment you can make into your business, time.
Yet you would be surprised the amount of small business owners who do not read. The greatest investment you can make into your company is the acquisition of knbowledge.
The second most importnant importnant investment is unfailing belief in where you are heading.
Jansie,
Certainly. I think it’s a matter of how you think about your business first. If you don’t have money to spend, are you still willing to when you have it?
linkerjpatrick,
(every time I write you handle, I smile.)
Exactly. There are other things you can do to invest in your business. Time is a commodity as well. Yet the willingness to invest money is what often makes the difference for small businesses. Notice I said willingness…
Olivier,
So why aren’t you investing even a small amount toward marketing?
Patrick,
I know what you mean – I work with those clients all the time. Knowledge is vital. As is understanding in how to use it. Yet money still seems to be the sticking point for a lot of businesses, don’t you think?
I’m just making a wild guess here, but I’m betting the investment of time and of money are equally important, just at different times in differing proportions.
And either way, there has to be synergy in the investment: i.e., don’t invest money without having thought it through; don’t invest time unless you’ve tied it to some need and/or have it budgeted.
I’m notoriously bad at the latter–budgeting–and am applying gobs of time (and effort) in Q1 to change this. Also, a little money, in that I’ve hired a bookkeeper.
Interesting topic. I hope you explore it further.
Dawud, we are on a very sticky wicket here. Being an entrepreneur is tough enough without having to choose one or the other.
There are two schools of thought. One says, do your business with your own funds to eliminate interest costs – Islamic businesses are classic examples. The other swings to the other extreme – do not use your own money to do business. For instance, hire premises, equipment and machinery and to the extent keep every cost as a revenue item. You build all these expenses into your cost while pricing and use techniques like buy on credit and sell on cash to maximize your profits which should of course be squirreled away.
The difference between the two is a state of mind. The first cannot differentiate himself from his business, it becomes his everything, he becomes his business, often with disastrous effects on his personal life. The second is totally mercenary. His motive is to make money at others’ cost. Not that his personal life is any better, but at least the financial side of it is not too bad.
Both can easily find advisers or consultants to fit into their strategy. I have also come across the same adviser suggesting one to one type and the other to another type!
I have also found that both work.
How can one choose between two perfectly logical approaches to an issue like this? A lot more information will be needed to suggest one or the other.
I suppose that a strategy combining the two will mostly be appropriate, but one needs a lot more background information to come up with an ideal one.
I agree wth you. In making a business big , you must first be willing to invest on it and focus.
Investing into promotions must be of course in moderation. It should be 10% of the total profit. In this way you are in direct proportion with your revenue.
Dawd,
Hey, great post. A few months ago I discussed this on my blog about Rethinking Marketing
http://blog.kamigomarketing.co.....-Marketing
communicatrix,
There is a balance, absolutely. And what I’m talking about is the often imbalance between time people are willing to spend and money. I see it all the time.
I’ve simply seen that you have to be willing to invest money in your business to be successful. Doesn’t mean you have to spend tons or get VC. It’s just important to get a flow of money happening in your business.
Home Recording,
Great points.
I think it depends on the size of your business. I work with some small corporations and spending often isn’t an issue at all. Yet the smaller, service-oriented solopreneurs I work with often don’t invest their money in their business. Yet, at that level, they need to invest – and invest their own money. A $250 per month marketing budget, for instance, while small can make a world of difference to a solopreneur making $75,000 a year.
lei,
Yeah. That’s why budgeting and planning are so important. You have know what you can spend, how you’re going to spend it and what you expect in return.
Charlene,
You make some nice points in the post. And one consideration is how you engage your people.
I agree with your point. If you are not willing to invest your time and money, then who else would?
If it fits into ones budget one must invest time and money in marketing, as without marketing it is very difficult to sell your product.
Laser Hair,
Exactly! The question really is do you make an effort to invest at least a little into your business? Not you, per se. But all of us.
Time is a very solid investment you can make on your biz. There is no quick way to make your business a success without giving it the dedication it needs. Actual hands on management – a key factor that should always be considered
Quality Link,
I couldn’t agree more. I’ve always held the notion that business owners should ‘own’ their business. In other words, they should be in it – not just farm everything out. The time for outsourcing will come.
For instance, I always feel that service-oriented clients should write their own copy. They may hire an editor – great. But write it in your own words first so people can get a taste of the you in your business. Because business is about relationships.
I agree that time isn’t the only parameter to succed a task.Global world wants money to circulate.
usa,
What’s been the most rewarding expense you’ve spent on your business?
Most rewarding expense on my business has been online marketing. Has brought me tons of clients I thought were unreachable.