The "Should I invest?" checklist. (Use this before you spend a single dime to "grow your business.")

Should I invest in this thing or that service? That’s a question that many entrepreneurs have to ask themselves day in and day out.

Truth: I run a lean business. Don’t get me wrong – I’ve invested money over the years and I still do. But I’m fiscally conservative and the services I put my money into are carefully chosen.

So it drives me batty to see other business owners spend tons of money on business “training” or even “coaches” or “assistants” when it’s really not appropriate or necessary. But I’m not surprised that they do. With slick sales pages promising riches or business advice saying that you “need” certain services, it’s easy to get suckered in to dropping your hard-earned dough or going into debt for stuff you don’t need (or won’t use).

There’s a way to avoid all of that useless investing.

It begins by shutting out all the fancy-pants sales lingo and taking a mindful approach with your money. Which means asking yourself some thoughtful questions.

This little “should I invest” checklist is a perfect example of what you should ask yourself before you part with your cheddar:

– Can I afford it? [blunt and to the point! Is this going to put you in debt? If so, maybe… no.]

– Has my business grown to a point where I can’t manage everything solo? [often, people invest in a “support team” long before it’s really necessary… either because they’re lazy, scared, or tech-phobic and don’t understand how to automate systems and run their biz efficiently…or because they believe the hype that a “team” will make you richer or at least appear that way]

– Is this is gonna make my life easier or harder? [do you have the time and patience to train a new intern right now? Is hiring someone going to make your life less complicated or more so?]

– Am I trying to “throw money” at a problem that I already know how to solve? [like: joining an expensive “business mastermind” mentoring group because you want to grow your business. you already know the steps you need to take, you’re just too scared to actually do them! so joining a “mastermind” feels like making “progress,” even though… it’s kinda not.]

– What, specifically, am I hoping to “get” out of this investment? [are you clear about what you want? does the person you are hiring know your hopes / wishes / expectations? are they realistic? make sure you have reasonable and clearly stated expectations to prevent disappointment later down the line.]

– Have I investigated the product or service carefully or am I rushing this process? [if you’re making this decision out of duress or because of sales pressure, pause. do your due diligence and study the product carefully so that you understand it completely. in the case of hiring a coach or other service provider, talk to them directly. ASK questions so that you get a feel as to whether or not they are what you need…and compatible with you.]

– How many hours of work will it cost you to afford this service? [this is my #1 question for determining the worth of a product or service. for example, if I want to buy a training program that charges $1500, that becomes roughly twelve hours I need to work just to pay for it. if I have to work more hours than I care to just to fund a product or service, then it’s not worth it for me.]

After asking yourself these questions, check in with your gut. What is it telling you? If you feel a yes – go for it! If not, take a pass and keep your stash.

A little contemplation before you hit buy may save you some cash. Cash that is better spent elsewhere. (Like on a brand new lion wig for your cat. Cause yeah…I really need that.)

Blessings,
Theresa