If there’s one thing that can negatively impact the stability of any business, it’s the practice of making purchases that are unnecessary or premature. For example, purchasing products and services that we think will improve sales, or getting toys and luxuries before our business can even afford them.
Sure, we all want the latest computer system and the fancy office furniture, and we want our offices to be decorated to look really great.
We want the company car and all the other perks of owning and running our own successful company.
Sometimes we want these things so badly that we get caught up in their acquisition, and we forget about the effect they have on the stability of the company.
Successful business people do it the other way around. First, they make money. Then, with a portion of the profits, they slowly acquire the perks.
Here are some questions to ask yourself to stay on track when you feel you want to buy a product or service:
1. Does my business really need it?
2. Will my business survive without it?
3. How many sales will I have to make to pay for it?
4. How much will it improve my business?
5. How many times a day will this product or service be used?
6. What is the most essential benefit that my business will reap from this purchase?
7. Is this the right time for this expense?
8. What will it cost to operate or maintain this purchase?
Answering these questions will help you make a logical decision.