When to invest in your business?

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Running a business takes investment.

The world of service providers (e.g. life coaches, holistic practitioners, speakers, permaculture practitioners etc.) is an unusual one.

In any other business, be it products or retail, there’s a clearly understood need to invest into one’s business. There’s the storefront, there’s the decoration, there are the machines and tools needed to make the products, there’s distribution etc.

Starting a new business, or scaling an existing one up costs money. That just seems to be how it is. And so that money either comes from savings or some manner of financing. No one questions this. It’s just how it is.

But, amongst the clients I work with? This is often utterly foreign.

In most industries, it’s understood that you won’t see a profit for two to three years, and you get yourself some bridge financing to sustain yourself in the meantime.

But, amongst the clients I work with? There’s an expectation of being profitable immediately.

I remember speaking with my good friends at Verge Permaculture about this and they told me how much they’d spent on their website. It was substantial.

“We see this as our virtual storefront. We want it to look good. We want it to work well. This represents us.”

Running a business takes investment.

Many service providers assume that this outlay of cash only applies to their training in whatever modality they’ve learned. But your expertise in your field is actually just what gets you in the door. That’s all.

If you were a cabinet maker who wanted to open a shop? Your skills would be the start but then you’d still need your tools, your space, the wood etc.

Running a business takes investment.

Sometimes you’ve got to spend money to make money.

But, in this sphere, it doesn’t always occur to people that they need to do this. So many try to do everything themselves. They become ‘do-it-yourself-entrepreneurs’. They don’t hire help. They don’t get coaches. They try to design their own websites. They don’t hire admin help, even when they need it. And then they beat themselves up with this idea that they should be further ahead than they are.

Running a business take investment.

Now sure, you can bootstrap it. That’s what I have done.

And slow, organic growth is a beautiful thing. It’s how I’ve grown my business.

And there are moments when a judicious investment can be a big help and allow your business to grow and thrive.

Where does that money come from? That’s another story entirely. I cover some ideas on how to generate cash flow quickly in my Meantime 30 Day program but, it may not come from your business.

I know some entrepreneurs decide to get bank loans or lines of credit. I know some borrow from friends and family. I know that others refinance the mortgage on their home.

This moment for investment usually comes when you are maxed out. You can’t do much more than you are. You’ve hit a sticking point that you can’t seem to get over and you’re clear what it is.

“If only I had _______” is how it usually goes.

When you find yourself in the moment, it’s worthwhile to sit down with pen and paper and a calculator and to crunch the numbers. Would an investment in what’s missing actually free you up and allow you to make more money in the long term? Even though it’s scary, might it be worth it?

And don’t just trust yourself. Ask your friends. Ask your colleagues you trust. Run the numbers by them and tell them where you’re thinking of investing. Have them point out the problems with it.

I’m not advocating foolishness. I’m advocating discernment.

But, once you’ve reached the end of your capacity and you’ve discerned where the investment is needed, there comes a time where you make the leap and invest or stagnate while others move ahead.

I invite you to sit with your business today for 15 minutes. Just sit and consider it, pen in hand with these questions written at the top of a blank sheet of paper, “Where is my business asking for investment? Where is my business hungry to be fed? Where is my business being asked to carry more than it can? What’s the most important investment I could make that would free me up to make more money?”

Just sit with it and see what comes and then, when the time is right, do it. Start small if you need to. Don’t hire a full time assistant, just someone to help out for two hours per week and let it grow. That kind of thing. But be willing to invest in the growth of your business.

There comes a time when it won’t grow without it.

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Note: If now is feeling like the right time to make some deep investments into your business’ growth, I invite you to get on the email list for my more in-depth, mentorship program. You can sign up here to be the first to hear when spaces open up.

About Tad