The biggest mistake owner has done was “he was never listening to other’s advice or suggestion”

“he was spending money like anything, he has signed contracts without even looking at what service those guys are providing”

I agree with article, you should devote your whole n soul to business if you want to make it successful.

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’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.

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.

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.

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?

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.

Olivier.