Investing in your Business
It's that time of year
Now is a great time of year to think about investing in your business. There are going to be plenty of upcoming sales this quarter (for software, digital products, and physical products) so let’s talk about how you can time it right to invest in your business at a great price.
Over time, I’ve used this same approach to add tools and resources to my business to support operations and growth in a sustainable way. Each item or tool I’ve added has special meaning and value 1) I know that my business earned the dollars to support the spend which is satisfying in itself; and 2) each addition was well thought out and intentional.
Questions to ask yourself
When you think about purchasing something for your business, you want to ask yourself a few questions to assess needs vs. wants along with appropriate timing.
Is this purchase necessary for my business? Is this item necessary to support business operations? This one is kind of a no-brainer, but still important to start with. Sometimes you must spend on items that are absolutely necessary, but may not be directly related to revenue generating activities. This is a great question to ask in all circumstances as there are items you may THINK you NEED, but they are actually just shiny “wants” that are a distraction and not the best use of your funds.
Will this purchase support my business growth? Will this purchase generate revenue? Will you be able to turn around and make a profit using this new product or tool? If you will be able to make a return on your investment, that’s the ultimate purchase win. Will it enable you to offer a new service or work more efficiently? Will it set you up for growth without the growing pains?
Is it time for this yet? Sometimes a purchase may not be a bad idea, but it’s a bit too soon. It may be a great product or service, but your business may not be able to support the spend yet or it may be a tool or software that is overkill for the stage you’re in.
Does this purchase fit my current means? Is it in budget? Even if it would really be nice, but if it’s going to break the bank you may want to hold off until you have the plan or the funds in place to comfortably make it work without putting your cash flow and bottom line unnecessarily at risk.
Once you’ve answered these questions, you should be able to more confidently make the decision to purchase or not to purchase. If you decide to purchase, make sure you document and record the transaction so you can see how it impacts your business as well as your tax return.
If you're ready to invest in your business, I've got something exciting to share with you. In January 2021, I'm launching a 6-week LIVE program to walk you step-by-step through how to implement the most foundational financial systems and processes in your business so you can move from feeling stuck and unsure to in-control and empowered in your business decision-making. I’m opening up 10 spots to work with me to create true transformation - if you want in, book a call here (spots are limited!).