How to grow a business & not lose your mind (Part 2 – Money)
Wow! Does it ever SUCK to not have (enough) money to start a business or keep a business growing, don’t you think? I mean, if you had an actual marketing budget… the kind that is in the bank, not the kind in your spreadsheet… you would be successful right? You could buy advertising, attend any event you want… heck, maybe you could even buy your customers lunch!
Sounds delightful. Because the truth about having money is that you have something to spend! And there certainly are no lack of choices to spend that marketing dollar on is there?
But I disagree. Having money, when you are a new business owner or part time entrepreneur, particularly if you are not a savvy marketer (yet) is probably your WORST resource. Yes. That’s what I said. Money is the worst asset for new entrepreneurs.
Are you pausing to think about what kind of blog you just stumbled upon? Have I lost my marketing marbles?
No! Let me explain! When you are a new business owner, with money, you can’t keep up with the multiple opportunities to spend your cash. You have to decide: spend nothing, spend it all, or stretch it as far as you possibly can.
Without the right knowledge about your choices and effective marketing framework (ie. decision-making guideposts) I guarantee, none of those are the right decision. So, have you ever made what ended up being a ‘bad’ decision with your marketing money?
I have yet to have a client that hasn’t told me, with tears in her eyes, about spending the only $500, $2000, $5,000 she had on something that seemed like a good idea, only to find it failed… big time. And the disappointment that followed was so significant that it sucked the passion right out of her business so much that the only thought left was “what the hell do I think I am doing trying to run a business?”
Wow. It hurts me just to write that. Because I’ve hugged those women and told them we’d find the good in those bad decisions, discover what is working right now, and move on. And we did. And they are.
So let’s talk about preventing wasteful spending… which is wasteful because it is spent on marketing opportunities that don’t yield results, or none that are measurable, tangible or lead to anything measurable, tangible. And what’s your motivation (as if losing your hard earned money isn’t enough)?
Wasted money equals lost time on growing your business. Because your money was not spent where it should have been, your business didn’t grow when it should have grown. You could be set back months or years in progress when you spend poorly on marketing.
Say “yes I did that” to these 10 statements when considering a marketing opportunity, & you can say “yes I will” to spending on it:
- I have set goals (and written them down) that I require this opportunity to achieve.
- I know specifically how this idea will help me achieve my goal.
- I know if I’m seeking long-term awareness building versus short-term tangible results.
- I have measurable tracking methods built into the idea so I can see if it’s working.
- I am committed to stopping, evaluating, fixing, repeating, discarding the idea when I know if it is working.
- I have researched what I can expect from this type of opportunity and my expectations are appropriate.
- I have researched other ideas and know this is the one that helps meet my goals above all others.
- I have consider how this idea fits with my other marketing activites. I understand how to leverage.
- I have considered if I can accomplish the same goals using my other 6 non-money resources.
- I can afford this (I have the cash). I can’t afford not to do this (I must find the cash).
Yes, I am adamant that with just very few limited dollars to get you started on your business with your brand and visual identity basics, you are better off holding onto your money until you have a bit of marketing expertise under your belt. Money does not grow on trees after all! The next money you have coming in after the family grocery allowance sponsors your business launch is from paying customers.
So, let’s make sure you get those customers through the door! Poorly spent money doesn’t find your customers. Try to make great money choices by aligning opportunities with the checklist above.
Previous article in this series is:
How to Grow a Business & Not Lose Your Mind (Part 1- Time)
Next article in this series will be:
How to Grow a Business & Not Lose Your Mind (Part 3- Passion)
More resources: 7 Essential Resources for Part Time Entrepreneurs- FREE class
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