One of the biggest obstacles business owners and professionals face is their own mindset, especially around money and spending it to make it. 

Too many entrepreneurs think small, or shallow.  They are constantly worried about making money and remaining comfortable in the here & now instead of focusing on growth and the possibilities and long-range success they could achieve.

I get it, you have to pay the bills.  When an opportunity comes along like coaching, joining a mastermind or a course, getting that software/service that will help, hiring a Virtual Assistant, or even joining a local networking group. You KNOW it will make a difference, but it just feels like another expense. 

You evaluate how much it will cost you…in terms of dollars and cents.  But did you ever stop to think that if you DON’T do it – that could cost you even more.

Here is a way to objectively look at what you can and can not afford to do, or not do, for your business. 

First, when evaluating a new project (joining a mastermind, or a networking community, investing in a coach, a course or software program) answer these questions about the value you are investing in:

• Will it help me to accomplish my goals in a more efficient or faster manner?
• Will it help drive sales?
• Will it help me to grow the business (best practices, structure, processes, etc)?
• Will it save me valuable time and effort?
• What will it cost for me to get the same accomplishment without investing in it? (time, effort) …and what is my time worth?

This will help you to see the benefits and value it will deliver. 

Now, to afford it in the real world…..

Let’s take a look at a few places you can find that extra money to put towards your business and your personal and professional growth.

In the Kitchen

Instead of swinging through Starbucks or another breakfast drive-through take the time to make your own coffee (even invest in a good coffee maker – it will pay itself off in a month).

Take your lunch to work or on the go. Stop making those one-on-one lunch or coffee dates…meet for a mid-afternoon break or a walk in the park. Better yet, use tech! 15 minutes on Zoom beats on hour to 1.5 hours meeting everyone face to face every time. (saving you time and money).

SAVINGS:  3 breakfasts and/or lunches a week = average $35. Annual savings of $1,820 minimum!

In your Car and House

Look at what you spend on your car (don’t lease – buy). Do you have more car than you need? Do you use all those bells and whistles? What about your insurance?

Your house – again…buy if you can…even if it is smaller than you would like or not in the exact neighborhood you desire to be in…you will get there. Get a roommate, Air B-n-B out an extra room if you have one. What about your insurance?

SAVINGS:  In working with clients we have seen an average annual savings of $6K! Once the car is paid off (instead of a perpetual never-ending lease) you save even more.

Take a look at these common household expenses:

Make a list of all the regular expenses you incur over the course of a month.  All the subscriptions you pay for, and regular expenditures…don’t leave anything out.  Put them in 2 columns – Necessary (needed to live, eat and breath, and vital to business operations); and Not Necessary (entertainment, pleasure, luxury).  Here is a list to get you started:

                NECESSARY                                                                                        NOT NECESSARY

• Rent/Mortgage                                                                                More house than I need
• Car/Insurance                                                                                  Too high – reduce payment
• Food/Groceries                                                                                Starbucks/Lunches out
• Internet                                                                                            Netflix/HULU/Cable/Youtube TV, etc
• Cell Phone                                                                                        Spotify/SiriusXM

We saved over $200/month recently switching from Cable TV to streaming services – and we don’t miss anything we want to watch.  That is a $2,400 savings every year.

In your Wallet

Use cash. Plastic and touchpay are not tangible…it doesn’t feel like you are really spending money (until you get the statements). By using cash you will spend less, do minimum impulse buying, and there is no chance you will end up having to pay interest fees.

SAVINGS: Hard to say…I am an impulse buyer, so by having cash I can save hundreds every month!

In your Business

What are you really using? Do you really need all those SaaS (Software as a Service). Do you need a co-working space or brick-n-mortar office? Do you need that second cell phone or answering service?

Here is a BIG one….do you need the latest phone? Pay off the one you have and save that $35-50/month. That alone could be about $500/year.

Software as a Service

For all of these evaluate if you can reduce to the BASE plan or even use the FREE version. Consider why you use it, how often, what is the benefit of using it (does it save you significant time/money, does it bring in sales, etc.).

• ZOOM/Meeting Software
• Calendaring System
• Canva/Graphic Design
• CRM
• G-Suite, MS Office, or Equivalent
• Bookkeeping Software
• Video Editing

KEEP GOING – THERE ARE PROBABLY LOTS MORE YOU CAN LIST

Now, for each thing in the NOT NECESSARY column…write down two things (1) how much you pay each month; (2) does it move you closer to your goals?

Sometimes SaaS is a distraction from just doing the work. It can loop you into reporting, documenting, double-entry, etc. which can waste more time than if you just did things the old fashion way.

Find a way to get what you need to Grow

We all have to take responsibility for our choices, where we spend our time and money. It chaps my hide when I hear someone say they need a business coach, or wants to join a group, or get that program/service they need, or hire a VA but they “can’t afford it yet.”

Then I see them with the new iPhone, having lunch a couple times a week and talking about the Netflix and Hulu shows they binge watched over the weekend…all while speaking to me through their car window that clearly is more than what they ‘can afford’.

Priorities. Sometimes it takes a few sacrifices in the short term. It is your choice.

Look at what you are considering investing in – like our $27/month networking group, the $97/month Grow group, or the $500 month Virtual Assistant.  Compare that expense (and the benefits and value you will receive from it to help you move towards your goals) against the amount of money you are spending on the NOT NECESSARY things that are getting you no closer to your dreams.

If you choose coffee over coaching – call it like it is.

Or if you choose Netflix over networking – don’t be surprised at the outcome.

If you choose a SaaS over a seminar, course, or coach – that is your decision.

But don’t then complain that your business is not where you want it to be – you CHOSE to be where you are. You DECIDED to spend your limited funds the way that you are.

Don’t be a victim of money – don’t let that be what holds you back. You can find it and use it to Grow.

Look, I am not saying you have to give up your coffee, or your movie binges, or even lunch with a friend.  But I bet, if you REALLY want to move your business forward, and you know that in order to do so in a more efficient and faster fashion it will take a few investments, then you can find a way to make it happen. 

Need help identifying where you can find a way to readjust your spending to have it work FOR you and not against you?  Give us a shout – we are here to help!