“I was talking with a friend about signing up for a $5000 marketing program that is easy to implement and will quickly make you back your money and then start turning a profit. I was shocked when my friend told me that he wanted to save a bit more money before purchasing the marketing program. This is a concept that so many business owners don’t understand: you have to SPEND money to MAKE money” – Internet Marketer
The phrase “you need to spend money to make money” frustrates me, not because it is not true, but because so many people end up spending money they don’t have to try and make money they really (or desperately) need.
This results in an endless spiral of debt, as people buy programs with credit, struggle to implement those programs, then jump into the next program in the hopes of making money to pay off the debt from the last program AND the new program. Then, they end up buying the next…well you get the idea.
I would love to create a new phrase and mindset for building your business:
You need to SAVE money to SPEND money to MAKE money.
BAM! The spiral of debt comes to a hault. You pause, take some time to save up for the program you want to buy, the ad you want to run, the team member you want to add; whatever the expense. You save first, then spend the money, and then you immediately begin to make money.
No interest payments on credit cards while you struggle to break even on your purchase, because you break even on your purchase the moment you make it, everything else is upside.
This is going to feel like you are slowing down the progress of your business, but there are always other strategies and tactics you can be putting into action while you are saving for the purchase you want to make. And, the reality is debt (especially large amounts of debt) also slows down your business, you are just deferring the slow down in exchange for the “quick fix” of buying stuff now instead of later.
Example – Publishing an ebook
At the moment I am working on writing an ebook for the Secure Entrepreneur, and part of my plan is to have this ebook properly edited and designed, which is going to cost money. I could have used my business credit card, or business line of credit to buy the editing and design services now, but I have no desire to go into debt to create this ebook.
Instead, every time one of my current clients pays me, I take 5% of that invoice and put it into a separate column on my money tracking spreadsheet as “Book Savings”. While I have been saving money I have been writing the ebook and doing my own editing. I have also been increasing the posts I make on this blog. This work has kept me busy, and my business continues to move forward, while I save for the editing and design of the ebook.
This month (May) I have accumulated enough money in my “Book Savings” account to pay for the editing and design work up front. The ebook will hopefully be ready to share at the start of June, and any business that this ebook brings in will immediately be adding money to the business, NOT paying off the debt I incurred to create the ebook.
Is the No Debt Plan for you?
If owing money to others:
– stresses you out and keeps you up at night
– drains your energy and focus
– blocks your creativity
– makes you alter your strategies
– changes how you speak with prospects and clients
Then try making the shift from the original phrase: “you have to spend money to make money” to the new phrase:
You have to save money to spend money to make money
And let me know how it works.