Making a Big Investment Decision? Here’s 3 Key Steps to Evaluate If It’s Worth It
You’re building your business, putting in the hours, and seeing some real growth—and now, a new opportunity for investment has caught your eye. This investment promises to drive your business forward, helping you attract clients and increase revenue. But here’s the catch: it’s a significant cost, and you’d need to dip heavily into your savings to make it happen.
Sound familiar?
It’s a common situation. You want to grow, and sometimes growth requires putting some skin in the game. But it’s also natural to feel uneasy about depleting your financial safety net, especially if you’ve worked hard to build it up.
So, how do you decide if this investment is the right move for you right now? Let’s break down the key factors you need to consider, from evaluating your goals to weighing the impact on your finances and mindset. By the end, you’ll be ready to make an empowered decision that feels aligned with both your business vision and financial stability.
The Situation: Balancing Business Growth with Financial Security
Imagine you’re sitting on a solid savings cushion of $45,000—a buffer that keeps you feeling secure, especially during slow months. But now, an $35,000 investment opportunity has come up. It promises to increase your client base, generate more revenue, and move your business closer to self-sustainability. The problem? That $35,000 would leave you with only $10,000 in savings, and the thought of being so close to empty gives you pause.
This situation raises an essential question for every business owner: “Is this investment right for my business right now?” You may be torn between wanting to grow and maintaining the reassurance of financial stability.
Options to Consider
So, if you’re in this position, what are your options? Let’s look at four possible paths:
Move Forward with the Investment: Commit to the full investment, trusting it will accelerate growth and enable you to build back your safety net eventually.
Set a Savings Goal First: Decide to hold off until your savings reach a certain level, providing a more comfortable cushion before investing.
Explore Incremental Investments: Find smaller or lower-cost investments that could help you grow without fully draining your savings. Sometimes, testing the waters with smaller steps can yield surprising results.
Delay Until Revenue Increases: Focus on client acquisition and revenue generation for now, then revisit the investment once cash flow has stabilized.
Each of these paths comes with its own risks and rewards. Let’s dive deeper into how you can evaluate which one feels right for you.
Key Questions to Ask Yourself Before Making the Decision
To make an empowered choice, you need clarity—not just about the numbers, but also about your expectations and feelings around the investment. Here are some key questions to guide you:
1. What Are My Immediate Financial Priorities?
Are you currently more focused on business growth or on maintaining financial security? This distinction is crucial. Growth requires investment, but stability provides a foundation to grow from. Understanding your immediate priority will help clarify what’s right for you.
Journal Prompt: What does financial security mean to me, and how much of a savings cushion do I feel comfortable maintaining?
2. What Do I Expect from This Investment?
Beyond increasing revenue, what specific outcomes are you looking for? Is this investment truly targeted to meet those goals? If you’re hoping this investment will solve a core issue, be clear on whether it’s addressing skill-building, lead generation, or another area entirely.
Journal Prompt: What do I want to achieve with this investment, and how does it align with my overall business goals?
3. What Feelings Arise When I Think About Spending My Savings?
Money often triggers emotional responses that go beyond numbers. Does this decision bring up excitement, fear, or doubt? Reflecting on the emotions you associate with this investment can reveal deeper insights about your readiness and comfort level.
Journal Prompt: How do I want to feel when making financial decisions for my business, and what practices or beliefs can support that feeling?
Key Reflection Points: Setting Yourself Up for Success
Once you’ve asked yourself the questions above, let’s look at three essential points to help ground your decision-making:
Short-Term Risk vs. Long-Term Growth
Growth often requires taking calculated risks, but it’s important to be realistic. How soon do you expect this investment to pay off? Would this timeline allow you to comfortably cover expenses if the investment doesn’t yield results right away? Balancing short-term risk with potential long-term rewards can help you make a decision that feels both bold and stable.
Affirmations for Confident Decision-Making
As you navigate these considerations, here are some affirmations to help you develop a mindset that’s both growth-focused and grounded in security:
Finding Your Balance Between Growth and Security
There’s no one-size-fits-all answer here; it’s about striking a balance that feels right for you. Successful business owners understand that growth often means reinvesting, but it’s just as important to feel grounded in your financial security.
Take the time to visualize what the right balance looks like for you. Imagine moving forward with the investment—how would that feel? Then imagine holding off—how would that affect your goals and motivation? Often, the choice that aligns best with your priorities and values will feel the clearest.
Ready to Make Your Next Investment Decision with Confidence?
If you’re facing a high-stakes investment decision and want guidance, I invite you to sign up for the **Better Biz Investment Coaching Call replay**. In less than 30 minutes, you’ll get actionable insights on how to make business investments that align with both your goals and your financial comfort.
Plus, don’t miss **The Confident Business Investment Planner Workbook**—your step-by-step guide to making empowered, strategic investment decisions. Get clarity on your goals, assess alternatives, and walk away with a concrete action plan that aligns with your unique needs.
Sign up for the replay and download the workbook today, and take the next step toward building a business that’s both profitable and sustainable.