As someone who does business coaching and consulting, I often times have to help people get over the fear or investing in their own business. First, I have to help them get over the hump of hiring a coach and then, depending on what stage of the business they are in, I usually have to help them get over the fear of investing in other things like bringing on team members or new web design.
The fact of the matter is that it costs money to make money. I didn’t believe this until I saw it happening in my own business. Earlier this year I spent thousands on a necessary re-brand and upgrading all of our back-end systems. There were definitely moments where I thought I’d lost my mind as I saw money flying out the door. However, just a few short months later my monthly business revenue has tripled.
Granted, just because it costs money to make money doesn’t mean you have to be stupid. Here are some of the ways you can get over the fear of investing in your business the smart way.
Know The Difference Between Investing and Wasting Money
I’ve noticed that people often times have investing and wasting money confused. They will waste thousands on a new website without having a clear marketing strategy and call it an investment. However, they won’t spend the same amount of money on a marketing coach that can teach them about sales funnels on websites because they consider it wasteful spending.
Can you see how this leads to problems?
It’s very easy to fall for marketing gimmicks when you’re first starting a business. You feel like you need that new course or the perfect website will bring in new clients. Heck, this can happen even long after starting a business! That’s why it’s important to get clear on when something truly is an investment versus when it’s spending.
For example, it may be a case of wasting money if it’s not yet the right time to make a particular investment. Going back to the website example, if you haven’t taken the time to really get clear on your marketing strategy, then it’s clearly not the right time to spend thousands on a new site design.
Create a Budget for Big Investments
The best way to get over the fear of investing in your business is to plan ahead. There is always a level of risk involved when growing a business, and truthfully you can’t really grow without sometimes taking a financial risk. However, the key is to take calculated risks.
I didn’t jump into a complete rebrand earlier this year without first creating a budget for it. I had a quote from my web designer, I knew how much the new email marketing system would cost and knew exactly what I needed to do to be able to pay for these things.
Assess The Risks
Another thing I did earlier this year when I was planning to invest thousands in a rebrand was assess the risks. Knowing any potential challenges that may come up and how you would address them can really help you get over the fear of investing in your business.
For example, when I was mapping out my budget for a rebrand I made sure to account for any unexpected expenses that may pop up. As luck would have it, right before beginning the rebrand process I ended up having to hire an attorney to help me with a trademark. Had I not allotted extra money for unexpected expenses, my rebrand would have come to a screeching hault due to finances. Or, worse, I would have gotten myself into debt over it.
There will come a time in your business when you will have to invest. Taking a financial risk in the name of investing can be scary, but by taking the proper precautions you can get over the fear of investing in your business.