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How should we think about spending money for our business?

InspireHD

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How should we be thinking about expenses, investments, or spending money that may provide a benefit in the future?

For example, there is a $1,000 online course you want to take that could accelerate the learning curve for something related to your current business. This would include everything to get the business up and running like contracts, how to sell and gain customers, and how to eventually scale. It also gets you into a private Facebook group and weekly coaching calls.

What about for a highly recommended online tool that costs $100 per month? Eventually, if you can get out there and sell, the first client who signs up could cover the entire cost...if you can get those clients. The risk is in initially paying for the tool until you can find a client to recover those costs. The other option is waiting until you have the client to subscribe to the tool.

Are these expenses (or investments) worth paying for? Since they would be used for business, including education, you can look into them being tax deductible. At least, in some way, you could justify it, right?

I think about this all the time, and without a side-business income, it's hard to feel comfortable spending all of that money upfront not knowing if there will be a return on that investment. I'll easily pay $100 per month for lunch at work and not second guess myself, but yet I'm hesitant to pay $100 per month on a tool that could have a significant return on investment if everything works out successfully (and maybe a tax deduction while I'm at it).
 

rogainer

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Depends how much money you have.. those courses can be valuable BUT on the flip side, right now you're on a website that probably has more info than 50 or more of those courses put together..

Software is a delicate balance, there is lots of free software to get the job done but possibly at the cost of way too much time fiddling. Again just a question of how much money you have.

Where do you live that lunch is $100? Copenhagen?
 

RazorCut

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Are these expenses (or investments) worth paying for? Since they would be used for business, including education, you can look into them being tax deductible. At least, in some way, you could justify it, right?
You have to ask yourself if that $1000 course is needed or is it just another case of action faking. A lot of people pay for courses because they believe it will move their business forward. They pay up, take the course then never use any of the information it contains.

The real reason their business is doing poorly is not for a lack of information, it is for lack of taking action with the information they already have.

They take the course because they already have the business cards, the letterheads, the photocopier and all the other action faking stuff they purchased before they even had a customer.

Never justify the investment simply because you can get a tax right off. Either the investment is good for the business or it is not. Besides it is only a tax right off against profits. Ignore the tax implications unless you are investing a LOT of money, then you should probably speak to your accountant first as there may be better ways to fund the expense.

Now, having said all that, if you truly believe that the course is going to move the business forward and you can hand on heart swear it is not part of an 'action faking' process then do it (having first checked out the credentials of the course creators of course).

I am considering attending a mastermind event in May that will cost $6000 and I think it will be worth every single cent.

What about for a highly recommended online tool that costs $100 per month? Eventually, if you can get out there and sell, the first client who signs up could cover the entire cost...if you can get those clients. The risk is in initially paying for the tool until you can find a client to recover those costs. The other option is waiting until you have the client to subscribe to the tool.
If a piece of software is vital to your business expansion then it is worth it. It can even make savings. I used to pay for a piece of software that literally replaced an office worker. It saved me over $1500 a month (plus never went sick or took a holiday). But there are lots of free tools available that will do probably 60% of what you need. And if you don't even have customers then spending $100 a month on something in the hopes it will get you clients is stupid. It won't replace taking action.

....This would include everything to get the business up and running like contracts, how to sell and gain customers, and how to eventually scale. It also gets you into a private Facebook group and weekly coaching calls.
Time for a little bit of tough love...

All that information is right here on this forum (save for the FB group and a weekly pep talk). Everything you have written seems to scream you are doing everything possible to avoid getting out there and selling your product/service. In other words Taking Action. Which is ironic as it is totally at odds with your Avatar picture.
 
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CareCPA

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I pay when it's either (1) necessary or (2) saves/earns me money.

Examples:
Necessary - I pay for payroll software to run payroll for my clients. I can't feasibly keep up on compliance laws for all 50 states, so this is necessary.

Saves money - I paid for proposal software off Appsumo (it was like $49 for a lifetime license, best $49 I ever spent). I can save proposal sections, so now when I create a proposal, I can just click the saved sections relevant to that prospect, update the prices, and have a full-blown proposal out the door in 5 minutes. The amount of time this saves me (and by extension, money) is ridiculous.

Don't spend money just to spend it. Spend money when you have a problem that needs to be solved, and there are no reasonable free sources available. If the software is not necessary to land the client (and it probably isn't), then don't pay for it until you have a client.
 

InspireHD

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Depends how much money you have.. those courses can be valuable BUT on the flip side, right now you're on a website that probably has more info than 50 or more of those courses put together..

Software is a delicate balance, there is lots of free software to get the job done but possibly at the cost of way too much time fiddling. Again just a question of how much money you have.

Where do you live that lunch is $100? Copenhagen?
Sorry, I didn't forget about this thread. I've been super busy working through the weekend and didn't have much time for my life.

I have the money for it, but don't have the business income to justify it. I'm still waiting on payment for my first paid website project. The idea was to turn the payment around on some education. I guess that's all just 'action faking' since I went out there and learned just about as much as I needed to learn for free.

As far as lunch, I work 12 hour shifts, which turns out to be about 14-15 days a month. Even if I average about $6 per day per lunch, that's only $90 a month.
 

InspireHD

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You have to ask yourself if that $1000 course is needed or is it just another case of action faking. A lot of people pay for courses because they believe it will move their business forward. They pay up, take the course then never use any of the information it contains.

The real reason their business is doing poorly is not for a lack of information, it is for lack of taking action with the information they already have.

They take the course because they already have the business cards, the letterheads, the photocopier and all the other action faking stuff they purchased before they even had a customer.

Never justify the investment simply because you can get a tax right off. Either the investment is good for the business or it is not. Besides it is only a tax right off against profits. Ignore the tax implications unless you are investing a LOT of money, then you should probably speak to your accountant first as there may be better ways to fund the expense.

Now, having said all that, if you truly believe that the course is going to move the business forward and you can hand on heart swear it is not part of an 'action faking' process then do it (having first checked out the credentials of the course creators of course).

I am considering attending a mastermind event in May that will cost $6000 and I think it will be worth every single cent.



If a piece of software is vital to your business expansion then it is worth it. It can even make savings. I used to pay for a piece of software that literally replaced an office worker. It saved me over $1500 a month (plus never went sick or took a holiday). But there are lots of free tools available that will do probably 60% of what you need. And if you don't even have customers then spending $100 a month on something in the hopes it will get you clients is stupid. It won't replace taking action.



Time for a little bit of tough love...

All that information is right here on this forum (save for the FB group and a weekly pep talk). Everything you have written seems to scream you are doing everything possible to avoid getting out there and selling your product/service. In other words Taking Action. Which is ironic as it is totally at odds with your Avatar picture.
Ultimately, it's just thinking I need it to learn something and complete the missing pieces. Or maybe I'll learn some insight that will magically make the money start flowing in. Subconsciously, I'm action faking thinking learning something new will make the process easier. I have a bad habit of procrastinating by learning and spending money that won't return me money in the future.

As far as the online tool, without the foundation of the business, I guess I don't really need to pay for it. I'm able to work my way through using the free version of it for now.

My head is all over the place thinking about what I really want to do. With web design, I got so motivated thinking I finally found something and a network behind it, but then I see all the recommendations against doing it and how difficult it is for some people to make sales and build a real, sustainable business.

My goal is to create something that will allow me to leave my current job and work for myself...to gain back my time and freedom. I'm frustrated that I feel like there is no hope for me. I feel like I'm always getting in at the end of the cycle.
 

InspireHD

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I pay when it's either (1) necessary or (2) saves/earns me money.

Examples:
Necessary - I pay for payroll software to run payroll for my clients. I can't feasibly keep up on compliance laws for all 50 states, so this is necessary.

Saves money - I paid for proposal software off Appsumo (it was like $49 for a lifetime license, best $49 I ever spent). I can save proposal sections, so now when I create a proposal, I can just click the saved sections relevant to that prospect, update the prices, and have a full-blown proposal out the door in 5 minutes. The amount of time this saves me (and by extension, money) is ridiculous.

Don't spend money just to spend it. Spend money when you have a problem that needs to be solved, and there are no reasonable free sources available. If the software is not necessary to land the client (and it probably isn't), then don't pay for it until you have a client.
I think I'm going to hold off for now and re-evaluate. I guess I don't need it until I get more committed and involved.
 

InspireHD

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Is it in your budget and your cashflow plan? what is your business's required ROI or payback period for investment? No idea? Time to sit down and write that out. Then spend time on sales and don't waste time on other stupid shit. Sales!!
I don't have a budget or a cashflow plan. I don't have any plan. I don't have any business foundation right now that I feel is worth committing my time and effort. And that sucks because I have such a big vision for what I want my life to look like, but I have no idea how I'll ever get there. It's a constant frustration that bothers me every day.
 

minivanman

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I don't have a budget or a cashflow plan. I don't have any plan. I don't have any business foundation right now that I feel is worth committing my time and effort. And that sucks because I have such a big vision for what I want my life to look like, but I have no idea how I'll ever get there. It's a constant frustration that bothers me every day.
While this is a bad thing, don't let it get you down. That is exactly how I built my original business..... winging it 1 day at a time. Back then, I had 0 guidance. Coming from where you are, I'd say, take 1 hour to sit down and write out a little plan.... just something. If you only have 15 minutes...... write it out. Then come back in a few days and spend 15 more minutes on it. I actually did this a couple of times and then didn't keep up with it. So, every time you sit down and write out a little, print that off and hang the new sheet some where that you will see it all the time. Would you rather be frustrated or spend 15 minutes a few days a week making yourself feel better?

As for paying for stuff..... I love FREE stuff. Lots of FREE stuff on the internet. We are here and this is FREE!
 

Crexty

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I pay when it's either (1) necessary or (2) saves/earns me money.

Examples:
Necessary - I pay for payroll software to run payroll for my clients. I can't feasibly keep up on compliance laws for all 50 states, so this is necessary.

Saves money - I paid for proposal software off Appsumo (it was like $49 for a lifetime license, best $49 I ever spent). I can save proposal sections, so now when I create a proposal, I can just click the saved sections relevant to that prospect, update the prices, and have a full-blown proposal out the door in 5 minutes. The amount of time this saves me (and by extension, money) is ridiculous.

Don't spend money just to spend it. Spend money when you have a problem that needs to be solved, and there are no reasonable free sources available. If the software is not necessary to land the client (and it probably isn't), then don't pay for it until you have a client.
Which software are you using for proposals?
 

CareCPA

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Which software are you using for proposals?
We're using Nusii.com
Like I said, grabbed it super cheap when it was on Appsumo. Integrates with Zapier and Stripe (and some others).
It lets me save sections, or entire templates, so I can piece together proposals very quickly.
 

InspireHD

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While this is a bad thing, don't let it get you down. That is exactly how I built my original business..... winging it 1 day at a time. Back then, I had 0 guidance. Coming from where you are, I'd say, take 1 hour to sit down and write out a little plan.... just something. If you only have 15 minutes...... write it out. Then come back in a few days and spend 15 more minutes on it. I actually did this a couple of times and then didn't keep up with it. So, every time you sit down and write out a little, print that off and hang the new sheet some where that you will see it all the time. Would you rather be frustrated or spend 15 minutes a few days a week making yourself feel better?

As for paying for stuff..... I love FREE stuff. Lots of FREE stuff on the internet. We are here and this is FREE!
I always look for free stuff and usually stick with that. I feel like I fall behind when there are successful people who say, "I took the course, it's really good!" They used their recurring income to pay for the course and used it to get further ahead. Yet, here I am spinning my wheels not gaining any traction.

Sometimes, I feel like I'm a burden. I read the books, I've been here for several years, I've reached out to some people who gave me advice, but I still feel like I'm in amateur mode with nothing to show for it, bouncing around from thing to thing.

I should know better, and I do, but I've gotten nowhere. I had a friend tell me, "you seem to know all this stuff and tell me what I should do, but you aren't doing it yourself."

I was/am doing web design, got my first paid site through an organization I'm in, started learning SEO and spent hours learning about it. Then, there was a post here about whether it's the current 'gold rush.' All the time, I see how people struggle to pay their bills and are having trouble finding clients. It makes me doubt everything. It deflates me a little bit and makes me question whether it'll really lead to me being able to leave my job. So, I go off thinking and searching about doing something else. There are so many things I'd like to do, try, and learn about, but it seems like I'm on the wrong side of those things.
 

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