Investing in your business may feel scary, but it’s essential if you want to shape the future of your business. It’s a testament to your commitment to growth and success.
What are your thoughts on parting with your money for the purchase of a plot of land or a house?
Any qualms around justifying a mortgage?
You’d be the odd one out if you say no, because consensus is that investing in your own property will get you ahead.
It’s an investment in our future. Not only from a financial point of view, but also because that house becomes a home where you can raise a family. It’s strategic and smart on many levels.
Interestingly enough, when we think about our businesses, we don’t necessarily apply the same logic.
But I’d like to argue that investing in your business can lead to equally remarkable outcomes down the road.
Here’s an example of what I mean.
In my business, I’ve worked with a lot with established indigenous and female service-based business owners and service providers. Many of them have transformed their operations, attracted high-quality clients, and achieved that effortless growth we all dream of.
What do they have in common?
A MINDSET THAT INVESTING IN YOUR BUSINESS IS A SMART IDEA!
I agree, this is going to need some explaining.
Spending Vs. Investing
We often struggle to feel ok about parting with our hard-earned money for our business because we see it as “spending” rather than “investing”.
Here’s how the two are different.
When talking about spending, you mean money going out of our bank account. POOF! Money gone!
But when you make conscious and strategic decisions, you use your resources to yield a (potential) exponential return in the future. (Which makes it an investment!)
The problem is that we don’t see investing in our business through the same set of eyes as we do with property investment.
Interesting how our thinking changes depending on the subject it relates to, right!?
I've fallen for it too. So do many of my clients.
The fact is that much like the house purchase, when done well, your investment lays the foundations for future business success, realisation of dreams and quality of life.
Which, of course, … is asking for a change in mindset.
The Mindset Shift
Here’s the important bit:
In order to get ahead in business, we HAVE to be bold and make strategic choices.
Is it scary? It sure is! I’m not going to deny that.
But it’s what shapes a thriving and impactful business. There’s no two ways about it.
It takes getting out of your comfort zone to emerge stronger, wiser, and better equipped to face any potential challenges.
SO… how do you cultivate this growth mindset?
It begins with recognising that the status quo will not get you there. Every strategic business investment is a stepping stone toward your future success.
Uncertainty and challenges are part of the deal. But looking at them as opportunities in disguise changes the perspective.
I also want to add this:
When I talk about investments in the future of your business, I’m NOT talking about reckless spending. I’m talking about calculated and considered risks.
As with anything, there is no one strategic business investment that will work for everybody. What’s right for me may not be right for you.
5 Different Avenues For Smart Investments In Your Business
As to what types of investment might be worth your consideration, there are some options to consider.
1. Education and Skill Development
This investment in your business is pretty obvious.
Courses, workshops, or conferences that align with your business goals all fit the bill. If it helps you to stay up-to-date with industry trends or helps you to become a subject expert, it’s a great investment.
Personally, this one has always scored high on the list for me. I’ve always wanted to be up with the latest developments in my field. I like to think it has served me well.
2. Mentorship And Coaching
I’ve spoken frequently about how being a business owner can be a lonely journey.
But it doesn’t have to be.
A mentor or business coach can be a guiding light in your entrepreneurial journey. (Proof in point: I may be a business coach myself, but I have my very own business coach!)
If you choose well, your coach or mentor has been there before. They’ve done the stumbling, they’ve journeyed the wins and the fails before you.
Because of that, they can offer insights, perspective, and actionable advice that can save you time, prevent costly mistakes, and accelerate your growth.
I like to think of a business coach in the same way as an athlete’s coach: indispensable to reach peak performance. (I’ve spoken more on the topic of where to get advice as a business owner here.)
3. Outsourcing And Delegating
Another one of my faves in the strategic business investment department.
As business owners, we often wear multiple hats. It’s the name of the game, especially when we start out.
But the truth is, you can't excel at everything (Admittedly, I sometimes think I can. Still… )
That said, I’ve learned the hard way that outsourcing tasks or delegating responsibilities frees up time and energy.
But (and here lies the investment!) it allows you to focus on the high-value activities that truly drive your business forward rather than wading through the day to day slog.
4. Personal Development And Well-Being
Investing in your personal growth and well-being might not seem like an investment in your business, per se, but it's a cornerstone of success. I’d go as far as saying it’s essential.
When you prioritise self-care, mindfulness, and a healthy work-life balance, you're showing up for your business as the best version of yourself.
More productive, more creative, and more resilient.
5. Infrastructure And Tools
Much like a strategic business investment in outsourcing and delegating, this one is about freeing up your time so you can spend it on high-impact tasks rather than on repetitive jobs.
But there’s more to it than just that.
- Efficiency is everything in business. Investing in tools, software, and technology streamlines your operation.
- It also enhances customer experience, which can give you a competitive edge.
- And last but not least, whether it's automating processes or improving communication, the right infrastructure can boost your business' scalability.
So, think about your own business.
What areas could benefit from an investment?
Which strategic business investments align with your vision and goals?
Remember, there's no one-size-fits-all answer. Your business investment strategy should be as unique as your business. You decide what is your next best step.
Strategic Business Investments: The Cost Of Inaction
But in case you’re still not convinced, I thought I’d present you with the alternative of NOT making investments in your business.
Deciding to remain in your comfort zone may fool you into thinking you’re avoiding risks. If that’s you, I have news for you.
Missing opportunities - which we all know can cost you dearly.
Business stagnation and status quo- Because you lack new skills, fresh perspective, and innovative strategies. You're basically treading water while your competitors swim right past you.
Compromising adaptability - Deadly in today’s rapidly evolving world!
Diminishing your competitive edge- caused by a lack of strategic business investment in tools, technology, or infrastructure.
Foregoing innovation and creativity- When you're reluctant to expand your horizons, you might inadvertently stifle your creative potential. It's like locking away your most valuable asset: your own ingenuity.
Do I have you convinced?
How Do You Make An Informed Decision On Strategic Business Investments?
All this leaves me with the final question: How do you make a calculated risk?
Investing in your business should NEVER be an impulsive leap into the unknown.
Instead, it's a journey that involves careful consideration, assessment, and a dash of calculated risk-taking that involves your goals and vision.
Step 1: Define Your Goals and Vision
Every strategic business investment should start with a clear understanding of what you want to achieve. Take some time to define your short-term and long-term goals. How does this investment contribute to your growth? How does it align with your overarching vision? Once you have a destination in mind, the path becomes much clearer.
Step 2: Assess Potential ROI
Return on investment (ROI) is a critical metric to evaluate. Something could help you ahead to some degree but come with an astronomical price tag. That’s not a strategic investment. Consider both the tangible and intangible returns. How will this investment impact your revenue, efficiency, and customer satisfaction? Equally important, how will it boost your confidence, skill set, and overall business acumen?
Step 3: Research and Due Diligence
Before you dive in, do your homework. Research the strategic business investment you're considering thoroughly. Read reviews, seek testimonials, and get insights from others who have been there before. This step not only helps you make informed choices, but also builds your confidence in the decision you're about to make.
Step 4: Start Small and Measure Progress
If you're feeling uncertain, start with a smaller investment and gauge the results. It allows you to test the waters before committing more resources. Monitor the impact it has on your business. Are you seeing positive changes? Is it aligning with your expectations?
Step 5: Embrace Flexibility and Adaptability
Keep an open mind throughout the process. Business isn’t a straight line. It’s a wiggly one. Be ready to pivot if necessary. Sometimes, initial outcomes disappoint. That’s fine. Remember that the solution may be just a simple tweak away.
Step 6: Evaluate and Learn
Once the strategic business investment has been made and some time has passed, take a step back and evaluate its impact. What worked well? What could be improved? Treat each investment as a learning opportunity, regardless of the outcome. This mindset of continuous improvement is a hallmark of successful entrepreneurs. (I’ve spoken about this here) I’m always testing and refining.
Investing In Your Business
The biggest takeaway from this episode is to remember that each strategic business investment is a testament to your commitment to growth and success.
With that said, I’m sending you on your way to be brave and embark on a journey of making strategic investments in your business and yourself.
Believe in your potential, make bold choices, and carve a path toward the success you envision!
Do You Want Some Help With That?
Episode 100 may have been and gone, but if you haven’t booked your FREE 20 Minute Laser Coaching Session for the month of August, there is still availability!
Important note: There are no strings attached!
Simply take a look at the availability in my calendar and book yourself in. Bring one topic for us to talk about and I will give you laser coaching on this topic for 20 minutes. (You can book here)
If you are keen to get my eyes on your business, this one is for you!