Many companies borrow the money but end up getting into trouble instead of profitable growth. In this episode, our founder, Michael Hsu, shares an activity that helps you think through where to best use your money to grow your business.
Topic – 3 mins exercise to manage your money
Most people don’t think through about how to spend money. Money is one of the most important and limited resources to a small business entrepreneur. Thus, we’ve like to share an exercise to help you think through how to best use of your money.
Start with the idea of that if somebody gave you $500 dollar, what would you spend to grow your business?For Michael, he probably will spend on the facebook ad to grow revenue.
Next, what if somebody were to give you $5,000? What would you spend on? Again, Michael chooses to spend on facebook ad. It’s not a lot of money, but it’s a good amount.
Now, increase that amount to $50,000? How would you spend that money? Most people may have access to $5,000 but it’s not as easy as $5,000. You’ll take a little more time to think of that. For Michael, he probably will hire a salesperson and spend the rest on facebook ad. What would you do with this amount of money?
What if it $500,000 instead of $50,000? How would you spend the money? Would it be different from how you spend $50,000? You probably don’t have that question yet. It takes time to plan and think through it. But if you can take some time think through it, it’ll help you plan out when to spend it and how to best use of this money.
Last but not least, what if someone just hands over $5 million and you can only use it to help grow your business? If you’re able to spend $5 million on your business in the next 12 months. What does it look like? How would it be? Think through that, and it’ll change your whole perspective on how to spend your money.
The purpose of this exercise is to help you think through what would you do if you have that money, and how would you spend it to help grow your business. You’ll be able to map out what you’d like to build through the exercise, and know where to spend money to help you achieve the vision.
Share your thoughts with us and let us know how it works for you!