I’ll confess, over the years I’ve probably taken too many risks and bets. My mindset could use a bit more financial caution and frugality. However, I know for sure if I would not have invested in my business and taken many of the bets I did, I would not have the success I enjoy today. Your mindset to money is so important to how you use money in your business.
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In 2005 I took my credit card and invested about $20,000 to hold space at a hotel for the Small Business Summit. My first foray into hosting and producing my own events. It was a big leap for me. Today, years later, I’ve hosted and produced many successful events with hundreds of attendees each and large sponsors like Dell and Microsoft.
Lamar Tyler, founder of Traffic, Sales and Profit, teaches us in his TSP Mastermind that we should be INVESTING our money in the growth of our business. There’s a time and place to save money and for sure implementing Mike Michalowicz, Profit First, principles.
However, for business owners we want to fully understand the game of BUSINESS GROWTH. It’s about paying ourselves, yes. AND also investing our money to build even bigger and better businesses.
Please note, a bigger business does not necessarily mean more employees or a bigger building. It could just mean more profit, more capacity or impacting more lives.
The relationship between money and mindset has always been intricate and multifaceted. For small business owners, this dynamic plays a pivotal role in how they navigate their entrepreneurial journey. One of the primary reflections of this relationship is evident in the decisions they make about investing in their business. Let’s delve deeper into this entwined relationship and understand why investment isn’t just about money—it’s about mindset too.
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Money and Mindset: Two Sides of the Same Coin
The way we perceive money deeply influences the decisions we make in business and in life. For many, money symbolizes security, and spending can sometimes feel like losing a safety net. But for entrepreneurs, especially in the small business landscape, money should be seen not just as currency but as a tool—a tool that can be wielded to create, expand, and innovate.
The mindset shift from ‘spending’ to ‘investing’ is crucial. It’s not about watching your money drain away; it’s about strategically allocating resources today to secure a more prosperous tomorrow.
Why Small Business Owners MUST Invest in Their Business
- Growth & Expansion: Stagnation can be detrimental in the fast-paced business world. Investing, be it in marketing, new products, or expanding into new territories, is essential to stay relevant and grow.
- Staying Competitive: The business landscape is continually evolving. Competitors might adopt newer technologies, better marketing strategies, or other innovative methods. Investment ensures you aren’t left behind.
- Skill & Knowledge Enhancement: Investing in training and skill development for you and your employees ensures that your business is always operating at its peak potential.
- Innovation: Whether it’s a new product, a revamped service, or an improved customer experience, innovation often requires investment. And in many sectors, innovation is the key to survival.
- Building Trust: Customers and clients often perceive businesses that invest in themselves as more trustworthy and reliable. A well-maintained storefront, an efficient website, or excellent customer service—all require investment.
Overcoming the Fear
The hesitation to invest often stems from fear—fear of the unknown, fear of failure, or fear of making the wrong choice. But here’s the thing: not investing due to fear is a decision in itself, and often, it’s a riskier one.
To overcome this fear:
- Educate Yourself: Knowledge is power. The more you know about the potential ROI of an investment, the more confident you’ll feel.
- Start Small: You don’t have to make massive investments right away. Start small, measure the outcomes, and scale as you become more comfortable.
- Seek Counsel: Talk to mentors, peers, or professionals who can offer insights or share their experiences.
Conclusion
Money and mindset, when harmonized, can lead to impactful decisions that shape the trajectory of a small business. By recognizing the power of investment and shifting from a mindset of scarcity to one of growth, small business owners not only enhance their chances of success but also pave the way for sustainable and long-term growth. Remember, every big achievement starts with the decision to try—and often, to invest.
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