business growth

Where do you really need to invest?

I love the Facebook posts from first time moms, “Okay, experienced moms!  What do I REALLY need for this baby?”  It got me thinking this weekend about what you REALLY need as a new/growing business owner.  Just like there are a million different shiny business products, it seems like there are also a million different shiny opportunities to invest in your business as well.  So here’s my list of the 5 most essential things you need to invest in, and the top 5 things that can wait.

What you need now:

1. Education: Starting a business is going to show you very quickly everything you don’t know. That is the number one reason businesses fail. The owners just didn’t know enough to make the business succeed.

2. A good accountant: It’s time to stop doing taxes on your own. A good accountant can save you thousands of dollars by making sure you are set up as the correct entity and maximizing your deductions. My advice: If he or she suggests sole proprietor, run fast and find someone new.

3. Client Management software that fits your company’s needs: We invest in marketing to get customers in the door but if we are not maintaining them once they get to us, we are wasting a LOT of money. I learned this one the hard way. my inexpensive program cost me a lot of money by lost leads in my first year.

4. Help: You are not Superman/Superwoman. Invest in people to help you and build a team as quickly as you can. Don’t over pay them. When you can, use independent contractors and virtual help. It will save you in taxes. Expect them to work hard. Then get your butt in gear and spend your time doing Income Producing Activities so that you can afford to pay them.

5. Marketing: If you don’t have leads, you don’t have sales. However the first thing I would invest here is time and education. My first year I spent my marketing budget on things that didn’t really produce leads. They were great for brand recognition, but not for actual lead generation. Most small business owners I know that are investing into a marketing firm have do idea what their firm is doing for them. You need to learn enough that you can be in the director’s chair on this. Never write a check and blindly trust that they are going to take care of you. You need to know enough to be the one calling the shots with your marketing.

 What you don’t need now:

1. A beautifully perfect website: Ahhhh, I know that one is a heart breaker. Websites are great, don’t get me wrong, but a website does not mean you have clients and cash coming in. Get some clients first and then work on that website.

2. A beautiful office: It is a lot more fun to work in a great space, but think about how many huge businesses started in garages. Work with what you have.

3. An expensive power suit: I wish I could take you all shopping and teach you my secrets for finding great clothes at amazing prices, but I can’t. It is important to look sharp and professional. You are sending a message about who you are. It just isn’t essential to pay a lot for it.

4. Specialized software: my first year in business I came across so many programs that I thought I needed. At one point I had about 4-5 different $99/month programs that I thought I needed. They were great programs, but each one only served one purpose. When I figured that out, it was actually less expensive to pay an assistant to do what the programs did for me.

5. A large marketing budget: There are SOOOO many ways to be creative with marketing. Partner marketing, Facebook ads, and Referral programs are all extremely low cost and effective. Use your time and your creativity to connect with potential clients.

You do need to invest in your business!  Just make sure you are investing in the right places. For more details visit here: http://amywalkerconsulting.com/