Learning to Invest, but Keeping Costs Down
When you start making money, you'll probably start thinking about buying things your business needs—that is, investing. Let me share some advice:
1. I believe investing in technology and machinery and so on will usually benefit your business. However, anything you buy for your business must earn its keep. Don't buy something just because it looks good.
2. If you need to buy an expensive machine, consider renting it first, or taking it on a trial basis. You might also consider subcontracting the task to another company, or using a bureau.
3. Don't move into business premises until you absolutely have to. Save your money, work from home, and use a business center.
4. Buy nearly new or ex-demo items for business, and try not to buy the latest model if you don't need to (see Part III for more money-saving tips).
5. Always keep your costs to a minimum, even when you're doing well. Many people get complacent when they earn big sums, and start buying things like expensive business lunches, vanity ads, and full-price office equipment.
Remember—it's easier to save than to earn.
Apparently, Henry Ford offered $25,000 (a very big sum at the time) to any employee who could show him how to save a single nut and bolt on each automobile he made. Fewer nuts and bolts soon added up to big savings.
It was thanks to Henry Ford's penny-saving attitude that cars were produced at a price nearly everyone could afford.
Think about this example when you're ...