I was watching some videos recently of entrepreneurs who were essentially explaining the path they took to become financially successful at what they currently do. While there were a lot of common themes such as being persistent there was one point about investing a lot of money into resources as a start-up person that was kind of interesting. Imagine starting any business where financially you don’t really have say $5000 to invest in starting maybe a photography business. So your mindset would be to use something low end for the time being and as you get clients and grow then you can afford and justify in getting the pricier items.
Sounds like the logical way to do it right? But for one person he was explicitly saying how the quality of work he was able to produce due to the restrictive equipment he had was actually costing him business as people didn’t view him as much as a professional compared to others. So he eventually decided to just take the plunge and purchase all the high end gear. In his case he ended up growing his business way faster because of what he was able to produce now. With the professional quality too he was able to demand for more money.
This is always a tricky subject as you truly need to find the balance between investing money into something that will make your offering more appealing versus thinking that will automatically bring you say more business. For example, a lot of people start their business out in their garage. You don’t need to invest in some fancy building for that. But if it is something to make your product 100 times better to help you stand out and earn more then maybe that isn’t a bad investment. Again, as long as you don’t fall into the trap of thinking spending a ton of money will automatically mean you will be ahead of the game per se. You need to have everything else set first I feel.