As the adage goes, you have to spend money to make money.
But — there’s always a but.
Every cent spent on the business should generate revenue and profit (or contribute to revenue generation). Most entrepreneurs follow this rule, but as we know from the endless list of failed businesses, it doesn’t always work out this way.
I’ve tried for the past decade to follow this rule, but I acknowledge I’ve spent significant money on necessities for my business that didn’t pay off.
I’ll put my hands up — I’ve made errors, blown the cash, and I’m not so proud of it, and to the tune of ten thousand dollars.
For some people, this is a small amount of money in business. For someone who doesn’t sell a physical product and has low start-up costs (I print on demand my books and once ran a website design business from home), it’s a lot to spend.
I regret how much I have spent on my businesses, especially without the return on investment to justify spending.
I know I’m not alone. I’m sharing my warning to make my spending regrets worth it.