"Purchasing power is a license to purchase power."
--- Raoul Vaneigem
When we invest in our businesses, we are seeking a good return, (or should be), on that investment. "You have to spend money to make money," has been repeated over and over again in various settings for as long as I can remember. That statement has some truth to it, but if it is spending to the detriment of the bottom line, then that is simply foolishness.
Wise purchases catapults a business to success. Upgrading a printer or computer software in order to provide more and better quality signage is good business. Making this kind of purchase without any work on the horizon though may prove to be foolish. The US Small Business Administration states that more businesses fail due to lack of capital than any other reason. If a business is heavy-laden with debt, it may be breathing its last.
"If a rich person invests in a business, either directly or through stock purchases, it means business can grow and hire more people."
--- Terry Savage
On the other hand, making thoughtful purchases into the business in the form of employee training, better sales procedures, hiring top-notch project managers, etc., helps the business to grow. Budgeting for these kinds of expenditures may also include account limits for front-line employees. In other words, many smart players are empowering their employees to use up to $100 without permission to do what it takes to make the customer happy.
This extended freedom pays off in many ways including ensuring customer satisfaction, but also increasing employee productivity and morale. One business executive said it this way: "It is amazing how much higher an employee's IQ goes when he is given the freedom to make decisions."
"If you want to be truly successful invest in yourself to get the knowledge you need to find your unique factor. When you find it and focus on it and persevere your success will blossom."
--- Sydney Madwed
Other good investments for your business include the purchasing print, online, and audio books that can help you to be a better leader. Spending for seminars and classes to improve your own skills is a wise investment into the business. Many of our associations offer these resources as well as local junior colleges and universities.
"I have never had the money to make too many large purchases."
--- Ian McKeever
If you find your business burdened with debt and cannot afford these expenses at this time, then wait. When business picks up you can begin budgeting for these for the future. In the meantime, look for free resources online and take advantage of what is available now to improve your skills and those of your staff. Seek out a seasoned veteran in your segment of the industry and see if they would be willing to serve as a mentor to you. Offer to work for free in the evenings just to learn from them how to improve your business performance.
"Property may be destroyed and money may lose its purchasing power; but, character, health, knowledge and good judgment will always be in demand under all conditions."
--- Roger Babson