Ah, setting the plans for things and questioning whether you are spending the right amount, in the right order for your business, is a problem we all face. I haven’t yet met an entrepreneur who hasn’t second guessed the decisions to spend money. The cost of the additional team member, marketing plan, or ad spend in her business. We want to be mindful of our resources, especially when we are starting to make money consistently, because we fear that one misstep will set us back again. Time to evaluate the return on our investment (ROI).
The good news, because it is a universal thing, we don’t have to lose sleep over our budget decisions. In fact, when we make a money decision, we need to stick to it until we decide to change. It is easier to say than do, I know, because money is involved. And most of us measure our successes on the amount of income we are making. Why that’s not always the best idea is for another blog post. Once you’ve made your decision, you can make decisions based on whether your Return on Investment (ROI) is satisfactory.
Evaluating Return on Investment
I’ve been guilty of evaluating my return on investment in pure dollars and percentages. The fact is, any investment has effects on time and energy as well. I budget for and hire different people on a project basis because they are doing the things that zap my time and energy. Things that may not be in my zone of genius, have a steep learning curve, and honestly wear me out to do. When you have a written plan for your business, you can more easily put expert help where it is needed.
The simple fact is that we have to be honest with ourselves first about what is important to us. We can monetize our time and compare how much we are spending versus how much your time is worth. I hired a cleaner once a week in March to help me tackle the house. Honestly, Andrea has been a Godsend. I made that decision by monetizing how many hours I spent cleaning, vs. how much it really cost to have someone come in and support.
Another recent decision of mine was made, NOT through monetizing my time, but rather through evaluating how much time and energy I was spending outside my zone of genius. The hours it took me to perform these tasks, and the energy drain was brutal. I was able to regain some productive time and have much better the results now that I outsourced the project.
You Can Always Change If it Isn’t Working
My coach has a great expression that, “You aren’t getting a tattoo on your face.” And, unless you really are, you can change anything once it starts. As your business matures and grows you may find some processes or team members don’t fit your current ROI evaluation. You shouldn’t feel bad about that. I have seen some business owners who hold onto a business decision a little too long. Typically because they don’t want to “upset the apple cart” and hurt someone’s feelings. You can change suppliers. And you can change social media managers. You can do all the things you need to as you are staying true to your vision. You should re-evaluate ROI regularly as you are making the next set of decisions to move forward.
If you are struggling to make these types of business decisions or are wondering if it is time to make a change in your company, you don’t have to do it alone. Grab a spot on my calendar for a free 30-minute support call, and let me support you in making the changes you must to move your business to the next level! Use this link https://dawnkennedy.as.me/support to book your call.