Is Stretching the Budget Worth It?

Giving Dumbo a run for his moneyYour friend who dabbles in WordPress gave you a screaming deal on your website design. And your niece, a student in University who loves Facebook, will run your company’s social media accounts. Fantastic.

Give me a shout in a few months. I’d love to hear about their work. My guess? You won’t have time to talk. You’ll be too busy hiring a professional designer to fix your website and doing brand-rep damage control because your niece tweeted from the wrong account during an all-night party.

Yes, it’s tempting to take the cheap route. At first it seems like a bottom-line-enhancing promise to improve your balance sheet in all the right ways.

And you’d be a fool to walk away from a great deal, right? Not so fast.

It’s time to start brushing off the allure of the cheap. Follow the path to better spending.

Take your time. When rushed, we tend to make less-than-optimal decisions. Time is your greatest ally on the value front. Take as long as you possibly can to calmly explore and analyse available options, rather than automatically writing a check for the one that’s least expensive.

Get flexible. Every business owner has to stretch the budget from time to time. But if you stretch yourself too thin, you’ll break. Instead, commit to being flexible and adjust your spending, when one balance-sheet line item goes up, another should go down. This will help you meet your business’s needs and protect your company’s longevity.

Look twice. Buy once. Real value is out there. But every time you think one of those deals is in front of you, there’s a chance it just seems really good because you’re comparing it to something pricier. If the cheap choice blows up and you have to pay to fix it, your budget will blow up, too.

The cost is important, but the value is more important when making good decisions.