Another Seth Godin nugget about spending money

[Scottish Business Owner]

It's been a while since I posted anything from Seth Godin (to be honest i've not been keeping up to date with his posts ) but the post below kind of struck a chord with me and I thought it could be relevant to some on here.

Seth's Blog: Spending money to (make/lose) money

Thoughts on the post? Is he right or wrong?

 

[Adventurelife]

As much as I dislike spending money as it would be nice to keep it all:drool:

I have never every managed to figure out a way to make money without spending money, but then I am not the brightest and the world seems to be full of get rich quick schemes from no investment

So if anyone figures out a way to make it without spending it, let me in on it please:thumbup:

 

[Lindsey Sharratt]

The only sure fire way I have ever found to make money without spending money is through symbiotic relationships.

I've seen a lot of clever ways suggested to do this but when you analyse the figures, most of them have a sting in the tail

 

[bsfweb]

This article deals with a crucial issue in business - spending money. Seth seems to infer that if one has the fundamentals of the business under control (kpi's - i.e. managing the variables that make the difference) then spending more money to create throughput is a 'no brainer'. The way I understand this is, as Robert Craven of the Directors centre explains it, 'Get the business model right first, then ramp up the turnover'.
Your feedback on Seth's article or my interpretation would be greatly appreciated.
I am currently bogged down in the quagmire that Seth refers to. The truth points to a almost certain weakness in my business model, otherwise it would be true for me that every £1 spent would bring in £x times more in revenue, making the decision an extremely easy one.

 

[Adventurelife]

This article deals with a crucial issue in business - spending money. Seth seems to infer that if one has the fundamentals of the business under control (kpi's - i.e. managing the variables that make the difference) then spending more money to create throughput is a 'no brainer'. The way I understand this is, as Robert Craven of the Directors centre explains it, 'Get the business model right first, then ramp up the turnover'.
Your feedback on Seth's article or my interpretation would be greatly appreciated.
I am currently bogged down in the quagmire that Seth refers to. The truth points to a almost certain weakness in my business model, otherwise it would be true for me that every £1 spent would bring in £x times more in revenue, making the decision an extremely easy one.

Unfortunately it is not as straight forward as spending generates more. In my case it does, however creating more work by spending also creates the need for

More equipment
More staff
Wear on equipment meaning replacement
More administration

etc etc

So it has to be managed and thought through in detail, we all have weaknesses in our business model so do not worry about that, a perfect one does not exist. I would suggest the ability to adapt and change your business model is much more important that having a perfect one

 

[bsfweb]

Seth Godin is a good example of making the step change from a small business to a major player since he sold his internet business to yahoo for $30 million dollars...as I mention in my recent blog on the subject...

Spending in business : : Business Consultant Now


Another fascinating thing about Seth is that he organised his own MBA course and invited 9 students to study with him for six months.

I have his 'Purple Cow' book, which I bought on amazon as a used copy for a few pounds only. Well worth a read.