How Do I Know What I Should Invest In?

We are talking about investing money into your business and how to make wise and thoughtful decisions so your money, time, and energy can propel your business forward. I’m sharing four steps that will lead you in the right direction when it comes to investing in your business.

It’s time to make those big decisions about big investments! 

What We’re Talking About

Types Of Investments For Your Small Business Slowing Down To Consider Your Business Needs How To Be Realistic About Investment Outcomes Thinking Through The Finances Of Big and Small Investments How To Know What Risks Are Worth Taking

Types Of Investments For Your Small Business

There are two types of investments to consider for your small business. First, there are ongoing expenses that can be inexpensive, like monthly software subscriptions or more costly like hiring a virtual assistant. Then there are larger, one-time investments, like building a website, that often make a more significant impact on your business. Whether small monthly payments, or larger one-time costs, it’s important to consider the long-term financial implications.

Slowing Down To Consider Your Business Needs

Are you the type of person that impulse buys? It’s time to slow down! Start slowly when considering your needs for your business.A good place to start is with what you have or to make small investments before learning if writing a big check, or taking out a loan is worthwhile. 

How To Be Realistic About Investment Outcomes

Not only should you be realistic about the impact you want your investments to have in your business, but also consider the time, energy, and emotional reserve it will require. Products or courses will only advertise the best possible results, not what is typical. It’s your job to consider what outcome is realistic for your business and if the purchase is worth your time and money.

Thinking Through The Finances Of Big And Small Investments

Once you’ve figured out what is worth investing in, it’s time to look at the numbers. Consider whether your investment is a one-time expense or recurring. Do you have the cash flow to make monthly payments? Will you have to take out a business loan or put the cost on a credit card, and is it worth the cost of the item or service as well as interest? Before moving forward with the investment, it’s critical to know if the cost is sustainable for your business. 

How To Know What Risks Are Worth Taking

After considering the first three steps, it’s time to figure out if the risk is worth taking. There are no guarantees or promises and it can be scary to make investments. Ultimately, consider the above criteria and take the risks that are most important to you and the future of your business. 

Are you being thoughtful and intentional about the investment risk you’re taking in your business?

LINKS MENTIONED

Interest Calculator

https://www.creditkarma.com/calculators/debtrepayment/