Why it is important for you to invest in your business? I’ve seen a lot of businesses. We’ve seen businesses that have been great, and we’ve seen businesses that have struggled. There is definitely one real theme for the businesses that have succeeded. They’ve made investments in their business. They’ve spent money upfront to build something now. This is a big step. A lot of businesses struggle with it. I get a lot of businesses that say, “I’m going to earn my way through expenditures. We’ll make some money, we’ll spend some money.” The problem is this constantly puts the business at the needs of their customers, and they’re constantly dependent on income coming in in order to grow.
Now, if you think about it, the business should be providing a value added service or product that the customer needs. The issue is that product or service needs to be delivered to the customer in order for the customer to pay for it. If you don’t make investments, or build the infrastructure, or have quality product or service to offer, then the money won’t come in. You really need to look at and separate the expenditures from the income. What service are we providing? Does it provide the value? If so, then you need to build the product or service before the customer will come. It’s the old famous saying from Field of Dreams, “If you build it, they will come.” I see a lot of businesses that haven’t built anything, but expecting them to come until they really build what they want to be.
Now, this is scary because it means putting in money before the business makes it. For some people, there’s an additional layer of complication, which is, they need to get financing because they don’t have sufficient money. They want to be an entrepreneur, but they don’t have the ability to provide the full package. They might be able to do the work, but they can’t also provide the capital, because for most businesses, what’s needed is a combination of both labor and capital. This is where you may want to consider a business partnership. We’ll talk about that in future blogs.
What’s been your experience with getting a company off the ground, capital investments, putting money in the business? Have you seen businesses that have struggled to grow because they haven’t put money into the business? Write in the comments below, let’s discuss.
This posting is intended to be a tool to familiarize readers with some of the issues discussed herein. This is not meant to be a comprehensive discussion and additional details should be discussed with your attorneys, accountants, consultants, bankers and other business planners who can provide advice for your circumstances. This article should not be treated as legal advice to any person or entity. Freeimages.com/photographer svilen milev.
About the Author
Shawn McBride is the Chief Innovation Officer at McBride For Business, LLC. He is a frequent speaker at events. His signature keynote, The 3 Laws of Empowerment, (www.rshawnmcbridelive.com), gives audiences an entertaining look at how they can prepare, plan and protect themselves. You can reach R. Shawn McBride at firstname.lastname@example.org or (214) 418-0258.
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