Do you lean more toward Marketing or Reinvestment?
As business owners, there are always many things to keep us busy. However, if you had 5,000 dollars right now would you be more likely to spend it on marketing efforts or refreshing your business (product, service, equipment, store, etc.).
It can be challenging to know not just where your money needs focused, but when it needs focused on that area as well.
Put it all on red, marketing.
Peter Drucker, the father of business consulting, once made a very profound observation:
“Because the purpose of business is to create a customer, the business enterprise has two–and only two–basic functions: marketing and innovation. Marketing and innovation produce results; all the rest are costs. Marketing is the distinguishing, unique function of the business.”
With the proceeds, put it all on black; innovation. Re-invest in your business – improve your product, process, people.
Repeat.
1/2 & 1/2
Agreed its generally a mix of both marketing and re-investing (or vicious circle sometimes). They both go hand in hand and you can't drop the chain on either for too long. With that said if you get too busy, you can put the brakes on some marketing, but you can never stop re-investing, as there are always areas that can improve and enhance your operation.
Jef Lippiatt, Owner at Startup Chucktown
Thanks for your answer Steve!