How have your expenses made your business money?
Early on in my business, I got new clients in rapid succession. I sent over the documents for signature to each client. When I received their signed copies, I printed, signed, scanned, and emailed the files back. I did this twice in two days and quickly realized having an e-signature tool was going to be valuable.
It was time to spend money to ease the burden of closing deals – on myself and my clients. So, I signed up for a service. I selected one I was familiar with and aligned with my existing tools and never looked back.
As business owners, we scrutinize our expenses. Everything impacts the bottom line. It is easy, when questioning new expenses, to assume it is not necessary. You have the conversation with yourself about the amount of time being saved not being that significant or the impact on the business not being real or obvious. All for the benefit of a few dollars to the bottom line. Often, we see expenses as detracting from the success of the business when in fact we need to see spending money on different tools and resources as an opportunity to grow and strengthen your business.
Let’s flip the script and ask, how do expenses make the business money?
We know that taking a key referral source to lunch has the potential to generate more leads. We spend the money to attend a conference to connect with our ideal customer profile. Why, then, are we not exploring how a software tool will help us grow our business or free us up to spend our time on what we do best for the business.
The e-signature tool makes it easier for your clients to sign the documents. Which means you can start delivering services sooner, which leads to revenue.
As another example, a CRM (customer relationship management) tool ensures balls are not dropped on any business opportunities. Whether you use your CRM’s automated communication capabilities or set reminders in the tool to follow up on open proposals, having a CRM tool allows you to keep all the balls in the air to generate revenue and grow your business.
A subscription to a national journal provides valuable insights into your industry. Reading the journal regularly will keep you apprised of best practices to support your clients better. Yet, you question whether the money is a valuable investment.
Some tools are never questioned as an expense – your financial system is key for generating invoices and tracking the money. Having a video call account is key for holding meetings with your clients. You see that money as the cost of doing business.
Tools like a password manager should also be considered necessary given they enhance the security of your business (and not having security can be VERY costly). A scheduling app increases efficiency and frees you up to spend more time connecting with people that results in a stronger business. Many of these tools may appear non-value-add. However, they streamline operations which in turn creates space for you to work ON your business.
The adage of needing to spend money to make money applies across all aspects of your business. Leverage the saying to identify how spending money on the operations of your business will allow you to grow your business. When you run an efficient business, you have more space to focus ON your business and then you are well positioned to make an even greater impact with the work you do.