Investing More Than What You Are Bringing In

Investing More Than What You Are Bringing In

Today I have been contemplating about investing money for a project in hopes to learn if certain marketing strategies work or I could simply leave things as they are to let it grow with upgrades here and there. While it brings in money, the proposed marketing plan is a lot more than what the project currently brings in by a lot. However, if successful it should theoretically give it a big boost and return of investment faster than simply the organic way.

So the question is, would this be a good idea? Usually for one’s personal finance it is a terrible idea to spend a lot more than what you actually make because it usually results in one having no savings and the habit usually leads to one going into debt. But is this different since it is an investment for a business? That is one of the sayings where you have to spend money to make money. If you want to grow the you have to be prepared to invest in it.

It’s true if you need to establish the foundation such as the expense of actually building a restaurant. I feel the tricky thing is if you were thinking of adding something to say the restaurant such as an expensive signage that you hope will attract a lot of new customers then that is a little different in terms of spending money as there is no guarantee it will actually work. But for sure you will be stuck with the bill.

That’s why usually I prefer to only invest in resources and plans if the income generated matches or exceeds the expense of whatever the item or service may be. It’s safer of course and again some would argue you need to go big or go home. Tricky decision.

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