Becoming More Intentional With Your Business Spending
When our kids were little, money was very tight. Happy Meals at McDonalds were a splurge. The kids often wanted candy or toys at the checkout counter at the store, and we would usually just say, “we can’t afford that.”
As we gained a little more disposable income, we began to realize that we could no longer honestly say we couldn’t afford it. It was a conscious CHOICE to not make that purchase. We began to respond, “we’re not using our money for that,” or “we’re saving our money for something else.”
In retrospect, every purchase is a choice. Affordability and necessity are definitely a consideration in those choices.
We choose to pay the electric bill instead of losing power (although, we could take actions to lower the bill to have money for other things). We choose to replace a non-working refrigerator instead of replacing furniture that we’ve grown tired of (but is still fine)...but we may not buy the top-of-the-line refrigerator.
For business owners, the same mentality can and should apply. You have to spend money, but you need to choose where every dollar goes. Some of these choices are intentional, some are necessary for continuing the business, but many are done without even thinking.
Over time, we often don’t realize that we can spend differently. It’s also easy to think you can afford to buy something - so you do - whether or not you need to. Have you really looked at your spending to ensure you’re making a conscious choice where your money goes? Are you saving for future needs like taxes, new equipment, more employees or expansion - or even that special purchase?
Spending money intentionally can help you achieve your goals both personally and in business. Here are some ideas on making choices that help you spend wisely.
Not everything you spend money on reaps a dollar for dollar return - but look at what the return is on what you do spend. What happens if you cut that spending out? Is there a better, less expensive option? (Sometimes the answer is no.) Or, is the relief brought by spending that money worth it? Are there long-term benefits to the spending that may not show up immediately?
Need some help with looking at your business spending? We’re here to listen. Reach out to us today - and the initial consultation won’t cost you anything!