When I first struck out on my own almost four years ago, one of the decisions I struggled with most is how much to spend on books, training, and development. In fact, looking back I can safely say that I made a big mistake in spending too little.
My biggest problem was mindset. I say training as an expense, not the investment it is. In the early months when my cash flow was small – almost nonexistent – I rightly tried to control expenses. The problem is, there were gaps in my knowledge about running a business. I knew they were there but I wrongly decided I needed to wait until I started bringing in more money before I could afford to spend the money on learning.
Looking back, I now know I couldn’t afford not to spend the money. When I finally did break down and buy those books, sign up for those courses and hire a coach, I finally started to make progress. I can’t help but wonder how much further ahead I would be if I had started sooner.
If you have just started a business – or even if you’ve been in the trenches a while – how much should you be investing in personal and business growth? How do you know what’s the right amount? That’s a question I’ve struggled with myself.
Recently I was reading Grow Up! Strategies: the 7 Legal & Financial Strategies You Need to Up-Level Your Small Business by Elizabeth Potts Weinstein. In her book Elizabeth writes: “You should invest 10-20% of what you want to make this year, if you are a solo-entrepreneur or service-based small business.”
Yes, that’s right. Not a percentage of what you are currently making, but a percentage of what you want to be making.
When you are first starting out, this can be a scary proposition. You don’t have a ton of extra cash floating around. But I can say from my own personal experience that this number seems right to me. Whenever I’ve spent more than I thought I could afford, I’ve made great advances with my business.
If there has been a course you’ve been holding off on taking or some books you’ve put off buying, take a look at your financials. How much have you been investing in yourself and your business? If you’re like a lot of small business owners, it’s probably a lot less than even 10 percent of what you’re already earning, never mind what you’d like to earn. Maybe it’s time to consider upping the investment in yourself.
Remember, by making an investment in yourself, you are not only increasing your skills and knowledge, you’re sending a message that you take this business seriously and intend to be a success.
Andrea J. Stenberg
How much do you invest in yourself and your business? Have you ever spent more that you thought you should? Please share your experience by leaving a comment.
