A few days ago while reading Rework I thought about something a professor said while I was getting my MBA and then threw it out there as a Tweet.
The tweet grew legs and was retweeted and then discussed a bit. I love it when my friends on Twitter decide the topics of blog posts for me – thanks guys! I’m proud to be part of the new rich, we build six and seven figure business with two and three person organizations. When you’re that size you’d better never lose the mentality; borrow if you can, rent if you can’t, lease if you can’t rent, buy as a last resort.
The start-up mentality also keeps you from ever saying “that’s not my job.” Oh ya? Who’s job is it if there are two of you and the other guy is busy? See what I mean, start-up is the mentality that, we do what has to get done when it has to get done. We do the job as quickly and efficiently as possible with the resources we have at our disposal.
When the resources aren’t sufficient to complete the task at hand I ask myself in this order:
- Can I borrow it?
- Can I rent it?
- Can I lease it?
3.5 – Can I buy it on eBay or Craigslist? (I added this little gem of an idea) - Darn it! Do I really have to buy it new?
4.5 – Wait 24 hours before spending the money – it’s amazing how many needs become wants in 24 hours time.
Organizations of all sizes end up buying tools they need for one project and never use again. Trust me on this one, I have a basement full of “stuff” that really needs to go on eBay. Ah, eBay there’s a resource for all my new rich friends. Recently a friend of mine said, “who doesn’t like money?” By selling your “old,” used one time, tools on eBay you raise a little capital. Also, you can use eBay as your first stop when checking prices for gently used “stuff” you need. eBay may no longer be the answer (the tools often change maybe now it’s Craigslist that’s better) but be resourceful nonetheless..
What do you do to keep costs down and stay focused on the right tasks? Do you work with a start-up mentality (even if you work for a big company)? Please, let me know in the comments.
Great post! I'm working on a very similar topic for next week as well. So many companies lose sight of spend, be it from advertising, equipment or office space, and fall into the red based on impulse alone.
Sure this project provides 15k of cash flow but we have to spend 12k to actually take on the project. Is it worth it? What is the ROI? Will it provide recognition or additional work in the very near future?
So many folks jump head first into loans and don't realize building a brand and equity is free. And, as you said in 3.5, never forgot how helpful buying used is. Craigslist is your friend if done properly!
Joshua – I'll keep my RSS feed peeled for your post 😉 – Yep, the old “you have to spend money to make money” not so true anymore for many businesses. I remember reading an article about an entire hosting company being built with all used equipment purchased on eBay and Craigslist. Couldn't find the article to link it but I wanted to.-Jim
Very good post Jim! It reminds me of a quote, I think Picasso said it, “Good artists borrow, great artists steal.”
(BTW: I'm reading Rework right now, great so far, can't put it down.)