Cost vs Investment

Sep 17, 2021

Let's look at the difference between costs and investments..

Its easy to see all the money going out as a cost or even a drain on your resources….but don’t forget some of these costs are actually investments.

In a very generalised way, a cost could be described as a service/product that you pay for to be able to function as a business.

An investment is a spend that you make to generate more money, profit, opportunity or growth in that business.

I guess you could even consider one as a meeting a current need and one as serving a future desire.

There can be a mindset issue around spending money. Some will see all spend as a cost and for others it’s all about investment and being focused on future return and value.

You will have both kinds of spend in your business the key is to recognise the power of the investments that you make. Remember investments come in all shapes, sizes and budgets! The point is to understand the value that investment will bring back into your business.

The mindset shift from “I’ve just spent more money” to “I have invested in my business and future” will transform how you approach spend in your business and help you take the right steps when needed.

Food for thought, Have you invested in your business or are you just covering costs?


Costs are essential services or products and investments become essential when you want to grow!





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