December 15, 2020 5 min read
Opinions expressed by Entrepreneur contributors are their own.
Most of us have heard the phrase, “It takes money to make money.” It’s often necessary to invest in order to make more. This isn’t always an easy decision, but the question that many entrepreneurs ultimately have to ask themselves is, can you really expect customers to invest with you if you’re not willing to invest in yourself?
When you consider investing in professional development such as a coach, consultant, mentor or online course, making sure this is worth both the time and financial commitment is strategic. But if the statistics are anything to go by, this strategy can quickly turn into fear for many women in particular.
Research shows that 71% of all assets held by women are in cash, but that 68% of women lose sleep because of money worries. It’s time to stop letting the fear of not having enough stop you from investing to build your wealth.
These are my top three tips for making smart investments and minimizing money worries.
Home in on your goals
The first step is to write down your biggest goal for your business. What is it you really want to achieve? Is it to make six figures in fewer hours, or perhaps to build a big company that you will lead with lots of employees? Getting clear on this will protect you when you come across “shiny objects” — complex websites, funnels or branding that the sales world will try to convince you is absolutely necessary. We usually succumb to these entreaties when we’re not focused on our end goal; when we procrastinate and look for quick fixes. Deciding what is just a shiny object or a really good investment starts with the question, “Will this investment help me achieve my goal faster?”
Only when it’s a yes should you consider the investment seriously.
Work out your boundaries
Next, you need to decide if the investment is in alignment with what you want to achieve and how you want to get there. Write down what you are and are not willing to do to hit your big goal in your business. For example, will the commitment of the investment mean you’ll have to work 50 hour weeks when you only want to work 10? If so, then it’s probably not a good fit.
It’s also a good idea to write down your values. Don’t let your feelings or mental blocks get in your way. Take your time so your fear doesn’t interfere. You might think that you don’t want to do sales calls. However, sales are a big part of a successful business. So, is it actually true that you don’t want to sell and thereby help other people, or could it be that you simply don’t want to feel like an old-fashioned salesman cold-selling by knocking on doors? If you were to feel good about selling, would selling be aligned? Most likely it’s a yes.
Essentially, if your boundaries and values are in line with the investment, you should move forward to the last step.
Assess the level of support
Investments are a vehicle for getting you from A to B, and it’s up to you to decide how you want to travel. Think of it like an airplane: You can go from London to Paris flying economy, Business or First Class.
If you know that your money is tight and you are willing to have less support on your journey, an online course could be the way. If you know that you are willing to find the funds to get fully supported and get to your goal easier and faster, bespoke one-on-one coaching could be an option. If you want to be around other high-achieving entrepreneurs to push yourself and achieve more, a mastermind could be a great investment.
This is when you need to ask yourself the question, “Is this investment providing the right level of support that I want?” If that’s a yes, you’re on the right track.
The lowdown of Investing
Overthinking is often a massive pitfall, making you say no to things you really want and ending in you missing out on great opportunities. Investing in something is supposed to make you feel nervous and excited at the same time, and will most likely be a true game-changer in your business.
When I started out, I had no savings at all, only debt. But I wanted to move fast, and my family couldn’t afford for me to not make money, so I found a way to make it happen.
I started with “smaller” investments — $500 or $2,000 — which felt just as scary as the six-figure investments I make now. Since then, I have learned from experience that if the investment is not a stretch, I’m not really taking a risk, so the likelihood of me building success momentum is small.
Today, women invest with me at all levels — from $ 1,000 to $ 100,000 — and I celebrate them all for making the commitment financially, mentally and emotionally. Investment is always a risk, and having the tools to help you decide if it’s one worth taking is essential.