There are two types of business people:  Those that are successful in business and always pay their bills; and those that are not successful in business and have great difficulty paying their bills.  Why?  What’s the difference?

It’s my observation the business people who are struggling are always squeezing the budget, trying to get their goods and services as cheap as they can, never spending money on marketing and focusing more on saving a couple of dollars than finding new clients. 

Then we have the very successful business people who are living in nice houses, driving well-maintained cars, eating at the best restaurants, and generally enjoying life. 

There is a difference between these two types of business people:  The successful business person watches their expenses but aren’t afraid to spend money on what will make them money such as well-placed advertising, sales and marketing, hiring good people, branding their business.  All of these things return profits.  They’re big thinkers and they understand the old saying:  You have to spend money to make money…  But you have to make sure you are spending it in the right place. 

The business people who are struggling will make statements like:  I can’t afford to hire that sales person.  Or…  I can’t spend money on marketing…  I can’t, I can’t, I can’t… So therefore, they won’t do the business that will give them the financial security to have a better life. 

I understand it’s a lot easier to write these words than to actually do it. 

But during this economic slump we are experiencing the business person has to evaluate where to spend money that is going to build the business.  Yes, one must be conservative, cut where necessary, calculate the risks and perhaps make some well thought out, bold moves in order to capture business.