Updated September 2023
My dad has a tradition of giving the grandkids $20 in quarters for their birthdays. Last year, my son marched his money bags to the store on the day after his birthday and bought three Transformers Rescue Bots.
The next day, he realized there was another Rescue Bot he could have purchased. Forlornly, he said, “Mom, I blew all my money. Now what do I do?”
Jake thought he blew his big cash infusion. I think he made an investment.
Why? In the months since, those Rescue Bots have had countless hours of play. He even fashioned them into a megabot mech using rubber bands.
Are you blowing your money?
As we watch cash go out the door, we question if we’re blowing our money. But all operating expenses are not created equal. For your business to grow, you need to make thoughtful, strategic investments of time and money.
- When you put resources intentionally into marketing programs, improving your systems, expanding your leads or sales potential, getting new skills, that’s investing.
- When you fork over resources without intention or because you feel you have to, that’s spending.
Are you stuck on the runway?
It’s tempting to look at the money we have as a number of months of spending coverage (sometimes called burn or runway.) It feels safe to have more months of buying power available. But what happens when you get to the end of that coverage?
Finding low- to moderate risk, high-reward investment opportunities makes your business more financially sustainable.
Say you get a cash infusion, like a tax refund or a loan. It’s important to make investments quickly so they have time to pay off. You might consider a strategic investment or two like:
- Adding core / evergreen inventory
- Buying ads or sponsorships
- Hiring a consultant or temp employee for a short-term project
- Upgrading your lead generation programs
- Investing in a business advisor or course
I encourage you to consider where you can invest to extend your runway. You know it’s investing because it feels a little bit scary and uncertain.
If you’d like to be more intentional in developing your business, click here to book a strategy session or send us an email. We’ll give you a heads-up when we’re opening the next cohort. Meantime, sign up for my newsletter.