Sharing Daily Discoveries About Personal Finance And Business Topics

Investing In Your Resources Before or After You Earn Money

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It’s pretty standard where as part of starting any kind of business venture you often have to invest in various things to get started. While there technically are businesses you can do that require no real investment other than marketing initially such as a drop shipment based business many times you have no other choice but to spend money before you can earn money. This got me thinking where at times people refuse to invest in the quality items they need to compete in the marketplace place as the mindset is they will invest in better things as they generate income.

This doesn’t make sense many times though. A great example would be imagine someone wants to open up a photography business of sort. Typical clients could be couples that are about to get married and wish to document everything or restaurants wanting high quality food pictures for their menus and advertisement. The camera equipment can cost about five thousand dollars as an example to do a professional job. However, the person thinks this is too much since they are a start-up. So instead they opt to use their smartphone as the camera. As they get clients they will then reinvest those funds into getting an actually professional camera.

Would you think that is a wise strategy? To me personally I would think you pretty much need to invest in the right resources. I can imagine people enthusiastically willing to pay more to a company that has the professional gear for their once in a lifetime event as an example. It really does depend on the business of course. For example, writing and selling an e-book shouldn’t require you to buy a $1000 computer to do so. Sometimes you can start with nothing and sometimes it just makes sense to invest in the resources.


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