Investment mindset; The right mindset for successful businesses.
As a business owner, I am the first one to attest the expenses involved in running a business. I have owned a franchise, joined a direct sales group, and built a start up, and there are all kinds of expenses that come along with both, so it is fair to assume that there are going to be expenses, even surprise ones, with every business out there.
Unfortunately, there are too many business owners who look at everything they spend money on as an expense. This mindset is one of the biggest downfalls of businesses in general. If everything is viewed as an expense, then decisions are based not on a growth model but rather a survival model.
In both the B2B and B2C markets, it can be tough to make your brand, product, or services stand out in a crowd, and convince your target market to chose you over everyone else. How do you manage to do it? Do you consider your methods of accomplishing this an expense?
If you do, you have a survival mindset, and that has proven over and over again to be a failing mindset.
Primarily in the B2B markets, this is what we end up running into. Businesses looking at everything they spend money on as an expense.
Let’s take a quick look at 3 common needs that businesses often consider and expense instead of an investment.
Marketing- If a business owner says she can’t afford to market her business, she truly can’t afford to be in business. This is where failing and stagnant businesses continue to get it wrong. A stop-and-go or stop-and-wait mentality around marketing will cause business more failures than anything. For growth companies, marketing is an ongoing investment and an operational part of how the company conducts business.
Technology- Too often the “expense” of technology clouds an owner’s perspective on what the technology will ultimately do for the business in the long term. Business owners should always keep in mind how technology will help their business perform better, be more efficient and enable employees to focus on more income-generating aspects of the business.
Hiring- Business owners need to factor the time they have been spending on the into the equation when hiring. How much of your time, and therefore money or experience better spent are you making no income for? Prior to bringing on an new employee the business owner’s time is typically being monopolized by non-income-generating activities. Bringing on new hires creates time that is being devoted to one particular business activity that directly or indirectly generates revenue for the business.
Take into consideration the difference between businesses who grow, even in bad economies, and businesses that never quite make it. I will guarantee you that the successful companies are investing in these means, and others.
A simple shift in mindset can encourage business owners to engage in and harness the power of their investments. Imagine it, you have a strong and growing market, an efficient and well trained staff, and proof that your business will keep growing.
Now that’s doing business.
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