Investments new business owners should make

Anyone currently working in an office environment knows office politics, a who-you-know culture, and quarterly earnings mentality can hinder motivation and decrease chances of success.

While I bought into this game for years, I realized whether or not I would ever achieve financial stability by following someone else's plan. My success was based on how senior managers viewed me, not solely on my performance. The days of exceeding quotas and receiving rewards were gone. A few years ago, I had grown tired of playing the game that everyone else was playing. I realized I needed an entirely different game with less competition, less bureaucracy, and fewer rules. I knew I needed a job where I could be rewarded for results, where I could fail quickly and recover with even faster solutions, and where my value was recognized. So I went.

Leading with Fractional Sales

Starting out, I wanted to pursue sales training and coaching, but I quickly realized this was viewed more as a nice-to-have than a necessity. Sales coaching is often the first line item cut from a budget because it assumes the client is capable of implementing the strategies.

When I discovered the disconnect, I understood that business owners needed not just a coach, but effective sales leadership to build their sales infrastructure correctly and lead their teams. Additionally, these tasks needed to be completed within a fraction of exactly what you quoted and within their budget.

During my search on Google and LinkedIn, my co-founder Chad Meyer and I realized that no other company was addressing this market. Many had already implemented fractional models in marketing, finance, and other departments, but no one had followed suit in sales leadership.

In those moments, my emotions ran the gamut between excitement for the possibility of something new and concern that it had been attempted before and that there wasn't a market for this kind of service. 

 

Since we were solely responsible for educating small and medium-sized business owners on their sales leadership options, we were prepared. Letting companies know they have a unique option - one that they were unaware of - was daunting, but it was something we felt uniquely qualified to do.

4 Key Investments for New Leaders

Today, our fractional sales leadership business is booming-growing by almost 50% annually-and I continue to be delighted with leaving corporate America. Along the way, I learned I had to spend money to make money. And you, too, need to spend money to be successful.

You have to be willing to invest in the following areas if you want to stand up ideas that can make you millions:

1. Foundational Knowledge

We spent too little time and money on our first website; rather than spending $40,000 to $50,000, we only spent $5,000. The result was that our foundational elements weren't as good, and we had to redo them later. We lost time and money by not doing it properly the first time. 

That said, you'll want to invest wisely when you are just getting started by focusing on the things that matter most for your early success. Investing in things like software systems, facilities, and key personnel will help you lay a solid foundation from the start.

2. Hiring Your First Employee

Consider whether an expense will result in a positive return on investment before you make a decision. We made the mistake of saying yes too long before hiring a director of operations. 

When we did, it didn't take us long to realize she made it possible for us to focus on what we do best: sales leadership. She concentrated on her area of expertise. Invest in finding the right candidate too. According to the United States Department of Labor, hiring the wrong person could cost your company 30% of the employee's first-year earnings.

3. Fail Quickly

In this case, it is more a mental investment: fully embrace your risk of failure. Know that the sooner you fail, the quicker you can iterate and rebuild. The longer you cling to the idea of being right, the longer you will stand in your own way. Before starting my own business, I realized I had lost my self-confidence in my sales career. Once I recognized that, I knew I needed to move forward and find something meaningful. If you sense your soul is calling you to something more, pay attention to it and dive in.

4. Mentorship or a Board of Advisors

For the first few years, we placed limitations on our business based on what we thought was possible; we inadvertently limited ourselves. Our eyes were opened when we hired a team of experts with a wide range of disciplines. The advisory board challenged us to think differently, dream bigger, and take paths we hadn't yet considered. Create a shortlist by asking people in your network for recommendations. Select people with a track record of rebounding from failure and make sure each member has a diverse background.

Success is great, but it is even better when it comes from overcoming a challenge. If you are ready for the challenge of a lifetime - and limitless potential - it might be time to go out on your own. Just remember to invest in yourself and your decision.