“You need to spend money to make money.”
– Playwright Titus Maccius Plautus (c. 254 – 184 BC)
The playwright Plautus was most likely referencing the theatre with this quote, but it’s true to your own business, no matter its size. You must spend money to make money. Any business that doesn’t invest in its team and marketing assets will only hurt its bottom line profit.
Invest in Your Team and It Will Show in the End Product
If you want to play in the world of entrepreneurship and business, you have to look the part to build a start-up. No one will take you seriously if you don’t provide the quality of expertise you pretend to offer. That applies to every niche and attempting to build a footprint in every industry. Every element from marketing to design matters to the audience. Perception of authenticity is critical.
5 Reasons to Invest Money in Your Business
It doesn’t cost a fortune to create a successful entrepreneurial business. If you’re smart and savvy about your investments, you’ll see profit instead of losses. But you must invest money to show profits.
- Professionalism. It’s professional to pay your team. Do not barter or attempt to trade services with friends or new potential clients to deliver the bare minimum in results. This is weak and embarrassing. Word travels quickly. If you have no capital to invest in your own business, no one will want to be in business with you either. Set a budget and pay for all professional services rendered or consider getting a day job while you save money to invest. Either be professional or don’t start yet.
- Audience Respects Advertising Dollars. During the start-up of your business, you need to set a budget to invest money in advertising. Find your audience. Do your research. Meet them in their environment and gain their respect. Build early clientele by word-of-mouth and then start investing in advertisements. Do not use kickbacks, referral fees, or any other shady (potentially illegal) technique to build clientele. Build your business the respectable way.
- Clients Want an Original Experience. Invest in an original experience for your clients. Set a budget so website specialists or consultants can help you create and execute your vision. When a potential client sees an offering of a special experience, they’ll want to be a part of that experience. They want to belong to something extraordinary and life changing.
- Pay for Training or Pay for Your Team to Be Trained. This is the reason bigger businesses have on-going training programs for their employees. But smaller businesses need to invest in training to remain competitive. It is important to either take professional-grade training or pay for your team to be trained in using professional programs. Potential clients notice a novice and won’t engage in your business.
- New Products Offer New Potential. Invest in changing the business offering to grow your audience. With every expansion or addition of a new product, give it a new name with a heightened experience. Maybe you add a new product, a VIP offering, or a Master Class to help clients. Always consider the market and get feedback from the customer. What do they need? What do they want? Consider how your business can answer those needs. Adjust your offer and deliver.
Start-ups are very difficult. The truth is that most start-ups fail for a variety of reasons. Lack of capital investment is one of the biggest reasons start-ups fail. Investing and reinvesting profits are critical to finding success.
If you do your research, develop a service or product that the market needs, invest in your business, and adhere to a budget, you may show a profit and find success. Every stepping stone, no matter how small, can lead to a bigger stone and potentially a mountain of success. Think positively. Be smart and proactive. And most importantly, invest financially in your business.