Business spending - Investment or Indulgence?Posted on: Nov 25, 2017
One of the most challenging things about self-employment is managing spending; specifically, spending money on your business. There are times when you need to put your hand in your pocket, for example investing in training, keeping your insurances up to date and buying equipment. Those are the ‘no brainers’.
There’s also a million and one products and services that promise to make your freelancing life easier.
The latest laptop, the sexy time-management software, the ergonomic desk chair that cost more than your first car… how do you know which ones are actually going to improve your business, and which ones are just indulgences? Which ones are worth smashing the piggy bank for?
I don’t have all the answers, but it’s something that’s been on my mind recently. If you read my blog from a couple of months ago about working from home, you’ll know that I’ve struggled with it lately. I’ve been seriously considering renting out office space, but after getting various quotes for serviced offices in town-centre locations, I’ve had to admit that it would be a significant monthly expense.
Would having my own office be an investment or an indulgence?
I know that there are cheaper options out there, like co-working, hot-desking or the good ol’ ‘take your laptop into a coffee shop and make a latte last for several hours’ option. But there’s something about having an honest to goodness office that would make me feel like I’ve really made it.
So far, the only big purchase I’ve made was buying the best computer I could afford; apart from that everything else in my home office is either second-hand or Ikea. As a freelance designer, I’m lucky to have few overheads, so the sensible decision would be to keep it that way.
All self-employed people and small businesses come to a point where they have to consider the Investment or Indulgence question, and it’s not always simply a matter of cost vs benefit.
Spending money on your business is always going to be a risk, you just have to decide if it’s worth it.
For me, I have to question whether having an office to go to work to everyday would take my business to the next level, or if it’s more about satisfying my ego!
Watch this space…
Read more articles about the pros and cons of working from home here