I’m sure you’ve heard the old adage, “It takes money to make money”. You have to spend money to make money. It may sound cliché, but it’s true. When it comes to managing your business, you’re going to have to spend money in order to grow. Does this mean being completely irresponsible? Of course not; but, you can’t build growth by managing your budget.
When you know the direction you want to go or the goal you want to achieve –you have to go for it. You’re not going to grow profitability by saving money. So many people get wrapped up in cutting costs that you get lost in saving $100 on copy paper. Growing a business is more than just meeting a budget. Are you going to nickel and dime every hire you make or are you going to truly invest in people. The people you invest in are the talent and backbone of your organization. If you want to build growth, you’re going to have to invest properly in the right people to grow your business.
Repeat it like a mantra: You can’t manage your way to profitability while cutting costs.
You either want to go big or play it safe. Business includes making some gambles and rolling the dice. Are you going to be successful every single time? No. Are you ever going to be successful if you never take any chances? No. At least the former has huge opportunity for growth.
If you take the same energy that you put into saving every penny and put that energy into building growth through investment into your business, imagine the change you can make. Go for broke… in a responsible enough way. Consider that you are not wasting money. If you think about spending as an investment into your future, you will make different and better decisions. Some may be risky, but they have a higher opportunity for reward.
Budgets are not the worst business practice in the world, but they are limiting. Expanding and building requires you to loosen the reigns a bit. Spend the money where you need it to make your goals happen. If that means spending more on the salary of a fantastic addition to your team, go for it. If that means spending more on client retention and outreach, do it. What do you need to bring you to the next level and is a budget holding you back from reaching that next step?