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Are you investing in your business or just spending money?
Hi, this is Judi Otton with GrowthCast and you may ask, what’s the difference? Well, the difference is really if you’re investing you can expect to get a return. In other words, are you going to make more money because you spent this money or are you likely to make more money because you spent this money? Investing in your business is a great thing, that you should always be doing.
What are the kinds of things that you might invest in in your business?
- Well, marketing, marketing can be a great investment.
- Sales training. I’ve done that myself, invested in training myself.
- Hiring a consultant to help you fix a sticky problem that’s preventing you from growing.
- Training your staff.
- Buying machinery or equipment that’s going to help you improve your quality or improve your throughput or efficiency or allow you to launch a new product or line of business.
- Real estate might be a good investment and
- Relationships, not as using people, but because you can be mutually beneficial to each other.
Some ways that I see businesses spending money, and some of this, you’ve got to do, you just can’t expect a return on these, things like rent and utilities, that’s just money that you need to spend. Meals and entertainment, that’s money that maybe you need to spend. Maybe you don’t. And if you’re tightening your belt, that might be a good place to start. If you hire a consultant or go through training and don’t implement any of the benefits or suggestions that they’ve given you, that’s spending and not investing, you’re not going to get any return on that investment unless you implement what you’ve learned. And marketing, if you’re not evaluating the efficiency of your marketing, you may just be spending just throwing your money out the window instead of investing it wisely. If you’re ready to make a small investment in your business, please check out my Fiscal Fitness Boot Camp and you can learn how to manage your business finances just like I teach my one-on-one clients. This is Judi Otton with GrowthCast and I’ll be back next week with a new Fiscal Fitness Tip of the Week.