Imagine the following scenario. You are running a business. Your business is doing okay. For a while your business was growing consistently, but this has slowed down.
You analyze the growth, and you realize your business has reached a plateau.
For the next phase of expansion to happen, you need to do something you haven’t done before.
Perhaps your business needs a new website. Perhaps your brand needs to become more active on social media. Perhaps you need to promote your business via channels you have not used before.
No matter how you look at it, the realization dawns on you: It is time to invest in your business.
You evaluate your situation, and after much consideration you decide to take the plunge. You are ready to contact a professional.
At this point I invite you to ask yourself: Where is your focus?
COST vs VALUE
If you are like most people, your focus will be on cost. You will contact a professional, tell them what you need, and ask them how much their services will cost you.
That’s understandable. You are running a business and you want to keep your overheads low in order to maximize your profit.
I would like to propose a different way of looking at this.
Here’s a little secret that has helped many successful entrepreneurs to expand their businesses exponentially.
The key is to focus on value rather than cost.
What if you decided to focus on the value this investment will bring to your business?
WHEN IT’S TIME TO INVEST
As an example, $2,000 might seem like a lot to spend on a website if all you are getting is a website.
But what if this website will bring you an additional $3,000 worth of new business per month? That’s $3,000 more than you would be earning if you did not have this website.
In this scenario, the website’s value exceeds its cost within the first month of its existence.
Let’s take this one step further. This extra $3,000 per month amounts to an extra $36,000 per year that you might not have earned without the website.
So after the first year, the value of your website is $36,000. Considering it only cost you $2,000 to build, that’s not a bad return on your investment.
The above calculation is based on a theoretical business that does not grow after the first month. In the real world, your business could continue to expand each month, especially if you are using your social media and marketing channels effectively.
A couple of years down the line, the $2,000 you invested in your website seems like a small price to pay for something that has helped your business to grow consistently over a period of time.
WHAT TYPE OF ENTREPRENEUR DO YOU WANT TO BE?
On the other hand, if your focus is primarily on keeping costs low, you will most likely end up with a sub-standard product. Your designer will cut corners to save you money, and you probably won’t get a website that brings you the value you desire.
If your focus is on the cost of the website, you will get a website worth the amount of money you put into it. But if you focus on the value the website can bring to your business, you will end up with something more valuable than the amount you invest.
This example is to illustrate how a simple shift in focus can drastically affect the growth of your business.
If you keep this in mind next time you need to invest in your business, and you focus on value rather than cost, it will pay off in the long run.