Business owners, especially those with new businesses, try desperately to do everything as inexpensively as possible. That is not only perfectly natural, it is also sensible. Why would you invest money that you don’t have?
On the other hand, there are times when it is worth investing because you want to achieve one of three outcomes:
- The investment now means less expenditure later. The classic example is one my Dad gave me, “always buy the best tools that you can afford” he said. With his advice I still have electric drills, hammers and other tools that I bought over 25 years ago and have never needed replacing.
- The things that you need for a professional job just cost. Some things just aren’t available for a lower cost and you have to have them to do what you want to do. I wonder how many surgeons have said, “I’ll start now with some razor blades and a kitchen knife and I’ll get the proper tools later, when I’ve made some money”? None, I guess.
- The perception of quality. Some things just look cheap, don’t they? If someone did business with you, and offered you a business card that was obviously printed on cheap card on their inkjet printer, you’d think they were pretty low quality, wouldn’t you? How likely are you to do business with them?
Much of the time more than one of these applies, and so, whether one or more of these considerations apply, we invest. [Read more…]