A great business small or large makes business investments that help the business in the long run by making things easier to manage daily. Formulating your business with small investments is the key to prolong success.
However, I get it: You’re a solo-preneur. You built your first website, dove in and learned how to edit and upload videos to YouTube, figured out how to format your email newsletter, and even wrestled your shopping cart into submission.
But that feeling of pride that comes from doing the work yourself comes with a price. Too many small business owners are working too many hours, suffering from burnout and frustration—not because they’re not good at what they do, but simply because they’re unwilling to run their business with small investments.
They’re letting a scarcity mindset prevent them from taking the steps—and making the investments—that will have a massive impact on their business. And maybe you are, too.
A great business investment is outsourcing
By far the biggest objection to outsourcing you’ll hear is “I can’t afford it.” Perhaps you’ve heard—or even said it. But the fact is, if you’re a serious business owner, you can’t afford not to outsource.
The time you free up by not doing mundane, everyday tasks is time you’ll spend more profitably or you can just enjoy the free time!
Outsourcing should never be looked at as an expense. In fact, if you’re not getting a return on your outsourcing investment, take a hard look at what you’re outsourcing and to whom, because there is likely plenty of room for improvement.
Automation is a small but efficient business investment
Most online business owners start out using low-cost tools with limited features. For example, you might be using PayPal exclusively for product sales, and manually adding buyers to your mailing list each time you receive payment. While that’s an acceptable solution when time is easier to come by than money, you’ll quickly outgrow it. The problem is, too many entrepreneurs fail to recognize the benefits of true automation.
Not only is trying to “make do” with a pieced-together system costing you sales, but it costs actual dollars, too. You (or your Virtual assistant) will spend extra time simply getting it all to work, rather than letting the tools do the heavy lifting.
Recognize when it’s time to upgrade your marketing tools to include true funnel automation and watch your income increase dramatically!
Know when to invest in coaching
It is possible to build your business solely on your own. You can pay attention to what others are doing and reverse engineer their systems. You can read books and blogs and maybe invest in a few carefully chosen training programs.
But there will come a time when your growth will flat line, and you’ll struggle to reach that next level. That’s when it’s time to invest in coaching. And yes, even coaches have (and need) coaches. A coach can help you see past your blind spots, work through the blocks that are holding you back, and build a business you love—on your terms.
Now, let’s discuss money management mistakes that can outdo any business investments.
3 tips for better money management
Poor money management has been the cause of more business failures than any other single issue. And it’s no wonder. We aren’t born knowing proper money management. Most of us aren’t taught how to handle money either. We figure it out along the way, through much trial and error.
Those same mindset issues and bad habits that wreak havoc in our personal finances can plague our businesses as well if we’re not careful.
Must buy now syndrome
Some things are just hard to resist—especially when your friends and colleagues are all jumping on board! New tools, training, programs, and even business models can all have a strong pull, and if you aren’t careful, these shiny objects can quickly distract you from your current goals.
If you find yourself in a situation where you feel you must buy, then focus on the next points to keep good money management in mind:
• For “too good to refuse” offers, make a plan for achieving a positive ROI before you purchase. If you cannot find a (realistic) way to make the purchase pay for itself, don’t buy it.
• For exciting new business ideas, create a “someday” list. Jot down your idea and a basic outline, then get back to the task at hand. Now that great idea won’t be lost, but it also won’t join the ranks of half-finished business plans that litter the internet.
Don’t Double down on bad investments
Yes, small investments in your business are great, as mention, but don’t let the investments that aren’t profitable hold you down.
If you’ve ever said to yourself, “I’m not using this subscription, but I can’t give it up!” Then you’ve fallen for the sunk costs fallacy.
This common mistake is famous among economists, and we all fall victim to it from time to time. Simply put, the sunk costs fallacy is what makes us justify investing more money or time in something—even though we’re not seeing results—because we’ve already spent so much. It’s what encourages us to repair the car one more time (after all, you just put new tires on it), eat a meal we don’t enjoy (simply because you’ve paid for it), and yes, continue to pay for tools and resources you’re not using.
Take a few minutes and examine your current business expenses and investments. What are you paying for month after month that you’re not using? Either make a plan to put them to work for you, or cancel them. Stop falling for the sunk costs fallacy.
Don’t be too close-fisted
You thought this was all going to be about overspending, didn’t you? Here’s the kicker: Spending too little is just as bad for business.
When you’re constantly on the lookout for free and low-cost tools or working 16-hour days because you “can’t afford to outsource,” you’re not doing your business any favors. Sure, it looks like you’re bootstrapping and working hard to make something from nothing, but what you’re doing is digging yourself a rut nearly impossible to climb out of. Not only that, but you’re reinforcing a scarcity mindset that will continue to plague you for years if you let it.
Rather than pinching pennies, learn to spend money strategically. Buy what you need, when you need it. Invest in top-quality products and programs rather than settling for the low-ticket, half-baked plans. Just like quality clothes, cars, and furniture, quality services and software last longer and work better.