Entrepreneurs sort spending this way:
Spend this on a regular basis to cover the basics of running the business. I see the value of creating stability by laying a foundation of spending for regular operating expenses.
This spending could create more value later. I see strong enough growth potential for results that I value. These results may be money, resources, referrals, market share, and more.
Julie is debating whether or not to rent an office in town for her consulting work. Her clients are all over the nation, so there is no obvious benefit to them if she moves. In fact, she might be less accessible to her clients, because her home office allows her to be available at all hours. Yet, the isolation she feels in her rural home office is not nurturing her and she is noticing that she is losing enthusiasm for her work. She takes pride in being frugal and feels smart in taking a tax deduction for her home office. She wonders if it would be a waste of money to move her office to town, and then have expenses for rent and commuting.
What would you advise her to do? How do the concepts of investment and expense come to play here?
Julie needs to run the numbers, including her Body Wisdom numbers. She needs to evaluate the real costs and benefits of where her office is now for her, her company, and her family. Then she needs to evaluate the potential costs and benefits of moving her office to town.
Thinking of the move as an investment at first, with a potential pay-off later, helps her to open up to the idea that moving her office could be a way to grow a local group of clients for a new service she dreams of offering. Her mind is then freed up to map out how her expenses would change as her business changed.