"You have to spend money, to make money"



Share the ways in which you have had to spend money on promotional things in order to gain clientele and what the responses were.

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Yes, I do. We spent $10k setting up dh's business, and continue to spend the advertising dollars necessary, it's a vital part of running a successful business in his field. My business is much smaller, but I still spend money for a website to attract new students, and to communicate to my current students. My other big expense is buying music. I'm the only teacher in town providing lesson books free of charge, and my studio size has doubled this year. It's not that big of an expense, and we have a lending library we share books out of.

Congrats! That's awesome!

Yes you do!

In my case because I make hair goodies and stuff like that, I have to buy all the materials first. Sometimes I end up SPENDING more than I make, which is not cool. But thats just how it goes. Its gotten to the point where I will just make stuff with what I have here, and I'm not really doing much in the way of customs because I don't want to buy new stuff. Once my supply has gone down a bit, I'll stock up on more ribbon and go from there.

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Yes, but the key is to get a good return on your investment (ROI). You can't just pump money into a business and expect to get that money back in earnings; you have to be smart about your spending and how it equates to profit. The smartest expenditures are ones that lead to the greatest ROI. Rate of return - Wikipedia, the free encyclopedia

If you're in business, it's important to compute your ROI ratios.

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We also did a $5k renovation of the basement piano studio last summer, and added some signage at the road (luckily we are in an area where zoning allows this). Other big expenditures were to add a separate driveway with parking areas, building a walk up to the studio entrance, and buying instruments. All is a business deduction and a huge plus when attracting new students. Quite a large $ outlay, all paying for itself in less than a year by the added business.

One word of caution though.....this was all done after 20 years of teaching, and I was already established in the community, so there wasn't really a lot of risk involved. I would have never done such a thing as a start-up!

A good example of why you can't just spend money to make money without thinking it through is the situation with the Big 3 automakers. Throwing good money after bad won't save a failiing business, but wise investing in a company that has a solid business plan may. There's a big difference.

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Yes you do.
I make homemade dog treats. I originally made up my own business cards from a website on line. It was obvious they didn't look professional so once I used them all up I went to a graphic designer and got it done the right way.
It was much more expensive than I expected, but they are much nicer and will be worth it in the long run. Next will be getting a website.
I'm not selling dog treats other than at craft shows so I'm definitely spending the money to make the money.

Oops....I didn't read the full question very well.

ROI has to part of yoour decision to spend in the first place. I make gift baskets, and it needs strong willpower not to buy every 'cute' little thing I see on sale. I also think about what charities I support with raffle prizes etc, it has to be a market I am trying to cultivate. My special difference is that I adorn each basket individually, and try to match it to the recipient.