Business

An Organisation That Does Not Invest In Itself, Has No Future. Let’s Talk Investment

An Organisation That Does Not Invest In Itself, Has No Future. Let’s Talk Investment

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Imagine if you bought a nice cow, and it produces a lot of milk, but all you do is milk it, but you never feed it… What would happen?!

I know it sounds strange, for me to say this, but there are a lot of people, that actually do not invest in their businesses!

I see it all the time, and it never ceases to surprise me:
There are people who own stores, that they never even put a coat of paint on, from the day they opened, for the first time. There are people with factories, that never bought new machines, or carry out regular maintenance on those they have, until they break down.
They are many, many businesses, that simply do not invest sufficient resources into developing new products, or expanding their capacity.
Now, that I have mentioned it, just look around at businesses, that you know in your community, and ask yourself the question:

-“Do they have a policy of “continuous” investment, in their business?

No matter what business you are in, and no matter how small or mundane, the activities, there must be “continuous” investment in it.

A successful business, is one in which the owners, are constantly ploughing back the “majority of the money”, back into the business. They must be constantly investing to create new services and products. They must be constantly pushing to improve what they have.

I emphasise the word, “continuous”, because it should not be in “fits and starts”, but “continuous”: every single day, you must be thinking what you can do to improve. If you think about what what I am saying it does not really just apply to businesses. It applies to everything, even the public sector. It applies even to NGOs. This is a challenge to any of us, particularly those in business:

We must invest “continuously, and incessantly”.

Personally, whenever I meet investors, I always tell them, that I try to invest as much as possible back into the business. If they are just looking for short term profits, then, I am not their man. The interesting thing, is that those who really understand, expect it, and invest. When I consider buying a business, one of the key things, I look for in their financial statements, is to establish how much they have been investing in the business, both to maintain and improve what they have, and also to expand.

Finally, let me even add, this:

Even your home, and your car…needs continuous investment, if you are to uphold its value.
Don’t wait until things break down, before you feel it is time to invest. It will cost you more.

Think investment. Its important.

By Strive Masiyiwa

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