WE'VE MOVED!

We are proud to announce our NEW community destination. Engage with resident experts and fellow entrepreneurs, and learn everything you need to start your business. Check out the new home of StartupNation Community at startupnation.mn.co
Options

I Need Some Advice

Sweeper09Sweeper09 subscriber Posts: 1
edited February 2008 in Business Planning
I have a new online business that I am starting and I have $7500.00 to start this business with. I know its not a lot but it`s enough to get me started.
 
My problem is this, I can invest $3000.00 of my capital towards a software program that will allow me to sell a better product at double the price. But this will leave me with fewer funds for marketing and acquiring customers.
 
If I do not purchase this program, then my product although still good it will not be as good as the one produce by the software, but I can still make a nice return on my investment, it would just make things more time consuming. Plus I will have more funds to put towards marketing and building a customer base. 
 
Any advise would be appreciated!
· Share on FacebookShare on Twitter Share on Google+

Comments

  • Options
    robertjrobertj subscriber Posts: 0 Member

    I have a new online business that I am starting and I have $7500.00 to start this business with. I know its not a lot but it`s enough to get me started. My problem is this, I can invest $3000.00 of my capital towards a software program that will allow me to sell a better product at double the price. But this will leave me with fewer funds for marketing and acquiring customers. If I do not purchase this program, then my product although still good it will not be as good as the one produce by the software, but I can still make a nice return on my investment, it would just make things more time consuming. Plus I will have more funds to put towards marketing and building a customer base.  Any advise would be appreciated!
    A few comments / questions:1 Are you certain that this investment will enable you to sell your product for double the price?2. If so, then how long (or how many sales) will it take for you to recover your investment?3. Compare the first year results (numbers) for the two options.4. If you choose not to invest - what is your exposure if someone else does? 
    · Share on FacebookShare on Twitter Share on Google+
  • Options
    derekmderekm subscriber Posts: 0
    I agree with both comments above.  Anything you do in your business you should take a minute to evaluate the Return on Investment (ROI).  That ROI is crucial and depending on what it is you purchase for $3,000 it may simply not give you the best bang for your buck.
    · Share on FacebookShare on Twitter Share on Google+
Sign In or Register to comment.