Seth Godin: Spending Money To (Make / Lose) Money
What's the best way to use resources when growing your business?
When I was a struggling freelancer, I hated to spend money. I hired myself to do everything possible, because money I spent was money I didn’t get to keep.
When I was hiring researchers to find great leads for my first internet company, I loved to spend money. Every penny we spent made us four pennies, so I spent as many pennies as I possibly could.
And there’s the key distinction between two approaches to money.
If you build a business that processes inputs (leads, articles, code, attention, visitors, employees) and produces outputs that work, you want as many as you can possibly find. And if you view the world as a small pie with a finite number of pieces, better not spend on anything you can possibly avoid.
The trick is this: if your business isn’t working as you hope, perhaps it’s because you need to flip your approach.
Is it an expense or an asset? Is it a tax or an opportunity? Is it an investment or a risk?
It turns out that people have a very difficult time making the leap. Big company executives leave their jobs to start little companies but keep spending like money doesn’t matter. Freelancers skimp on spending that would certainly pay off, and quickly.
This simple decision needs to be an intentional one.
Seth Godin is the author of twelve books that have been bestsellers around the world and changed the way people think about marketing, change and work. His latest book Linchpin: Are You Indispensable? will shake up the way you think about what you do all day (and how you do it). Republished with kind permission.