Do You Really Need That?

How to Decide If a Business Investment Is Solving the Real Problem

As business owners, we’ve all been there. A shiny new course or tool pops up in your feed, and it looks like just the thing you need to take your business to the next level. But here’s the reality check: sometimes, that investment might not be solving the real issue in your business.

Let’s be real: it’s easy to make investments that feel like forward momentum. They’re packaged as “must-haves” for business growth, promising to bring in more clients, more revenue, and more peace of mind. And don’t get me wrong—these are often solid products or services that genuinely help a lot of people. But before you whip out the credit card, let’s take a step back and ask a crucial question:

Do you have a skill problem, or is it a lead generation problem?

This might seem simple, but trust me—it’s the question that can save you time, money, and a whole lot of frustration. Because here’s the truth: throwing money at the wrong issue won’t fix anything.

In this article, I’ll guide you through how to make investments that actually move the needle for your business, starting with identifying whether your main challenge is a skill gap or a lead generation problem. And if you’re ready for some clarity and concrete action, stick around for a resource that’ll help you make confident business investment decisions.

Why Misaligned Investments Are Costly

First things first: there’s a big difference between a smart investment and a misaligned one. The smart ones address your real business needs and lead to measurable improvements. The misaligned ones? They’re usually born out of impulse, and while they might feel satisfying in the moment, they don’t tackle your core challenges.

I see this all the time: a business owner has inconsistent revenue or client flow, but instead of digging into why, they sign up for a pricey certification or a fancy CRM tool. Now, is that certification or CRM bad? Absolutely not. But if the root problem isn’t being solved, these investments end up gathering dust (or sitting untouched on your hard drive).

So, how do you avoid this trap? Let’s break it down.

Step 1: Identifying the Core Problem—Is It a Skill Gap or Lead Generation?

Before you make any big business investment, it’s essential to assess whether your challenge is a skill issue or a lead generation problem. Here’s what each one looks like:

Skill Gap

A skill gap is when you lack the knowledge, expertise, or operational ability to carry out certain functions in your business. Maybe you’re great at closing clients but struggle with marketing, or you’re a master of content creation but fumble when it comes to organizing financials.

Common Signs of a Skill Gap:

• You feel lost or overwhelmed when tackling certain tasks.

• There’s a noticeable quality gap in some areas of your business.

• You’re regularly outsourcing tasks you feel you “should” know how to do.

Lead Generation Problem

A lead generation problem, on the other hand, is when you’re simply not attracting enough potential clients or customers. Your skill set might be on point, but if no one’s finding you, there’s only so far you can go.

Common Signs of a Lead Generation Problem:

• You’re delivering great results but struggle to maintain a steady client flow.

• Your conversion rates are low, or your pipeline is frequently empty.

• You find yourself asking, “Where are all the clients?”

Once you know whether it’s a skill gap or lead generation issue, you’ll have a much clearer picture of what you actually need to invest in.

Step 2: Avoiding Impulse Buys (Yes, Even the Shiny Stuff!)

Look, I get it. We’ve all been wooed by the marketing emails promising business-changing results. The FOMO kicks in, and it feels like if you don’t invest right now, you’re missing out on the key to success. But impulse buys are often driven by emotion, not strategy.

Here’s how to avoid impulse buys:

1. Wait 24 Hours: Give yourself a cooling-off period. If it still feels right the next day, then revisit the idea.

2. Ask, “What problem does this solve?”: Be specific. If you can’t clearly articulate what this investment will do for your business, that’s a red flag.

3. Review Your Financial Safety Threshold: Can you comfortably afford this investment without dipping below a financial safety threshold that feels secure?

By giving yourself some space to think, you’ll have a better sense of whether the investment truly aligns with your goals or if it’s just FOMO talking. The goal here is to be strategic, not impulsive. There’s a big difference between “This will solve my lead gen problem” and “Ooh, everyone else is doing this!”

Step 3: Key Questions to Ask Yourself Before Hitting That “Buy Button”

Now that you know the importance of identifying your core problem and holding back on impulse buys, let’s dive into the questions you should ask before making any business investment.

Core Questions:

• "What specific problem am I hoping to solve with this investment?"
  If you can’t pinpoint the problem, the solution might not be clear either.

• "Does this investment address my primary challenge (skills or lead generation)?"
  Be brutally honest here. If your client flow is fine, you might not need that lead generation course. If you’re struggling with delivery, maybe that new CRM isn’t your answer.

• "Have I exhausted free or low-cost resources on this issue?"
  Sometimes, there are effective, affordable ways to get closer to your goal without a big spend.

Timing Questions:

• "Is now the right time to make this investment, or should I wait until I reach a specific milestone?"
  Timing can make all the difference. Sometimes, it’s just not the season for certain investments.

• "Can my business afford this without compromising my financial safety net?"
  Always factor in your financial security.

Expected Outcome Questions:

• "What measurable result do I expect from this investment, and how will I track its impact on my business?"
  Vague expectations often lead to vague results. Be clear on what success looks like.

• "If this investment doesn’t yield immediate results, do I have a backup plan?"
  It’s wise to have a fallback in case things don’t go as planned. We love optimism, but sometimes things don’t pan out. Having a backup plan doesn’t mean you don’t believe in your investment; it just means you’re prepared.

Step 4: Improving Lead Generation Without a Major Investment

If you’ve identified that lead generation is your core issue, it doesn’t necessarily mean you need to throw money at it. Here are a few practical steps to explore before making a major investment:

1. Review Your Current Lead Generation Strategy: Look at what’s currently working (or not) in your marketing. Are there underutilized channels like networking, referrals, or content marketing?

2. Track Key Metrics: Measure important data points like conversion rates and client acquisition costs to see where you can optimize.

3. Experiment with Low-Cost Alternatives: Before dropping cash on ads or a new marketing tool, experiment with organic strategies. Try things like consistent social media posting, direct outreach, or building referral networks.

4. Adjust and Measure Results: Set a short period to test these tactics and see if they improve your lead generation. This approach will help you assess whether a bigger investment is really needed.

Step 5: Timing Your Investment for Maximum Impact

Even if you’re clear on what you need, timing is everything. Here’s how to make sure the timing of your investment aligns with your current business state:

• Evaluate Your Financial Readiness: Only make big investments if you have a stable savings cushion that won’t be seriously affected.

• Align with Your Business Goals: Does this investment tie into your goals for this quarter or year? If not, it might not be essential right now.

• Set a Timeline for Re-evaluation: If you’re unsure, give yourself a timeframe to revisit this decision once you’ve tested other strategies or reached a financial goal.

Invest with Intention, Not Impulse

At the end of the day, the most successful investments aren’t just the ones that make you feel good—they’re the ones that solve an immediate need in your business. Whether it’s a skill gap or lead generation issue, taking the time to assess your core challenge will guide you toward investments that actually drive results.

So, before you hit “buy” on that next course or tool, pause. Reflect. Ask yourself if it’s what your business truly needs right now.

And if you’re looking for more guidance on making confident, impactful business investment decisions, I invite you to check out the Making Confident Business Investment Decisions Coaching Call replay. In less than 30 minutes, you’ll get insights on strategic investing, identifying your true business needs, and making choices that align with your financial comfort. It’s all about investing with clarity—and I’m here to help you get there.