Is It A Cost or An Investment?

  • July 07, 2021 3:34 PM
    Message # 10735639
    Anonymous

    As the economy begins to swing back upwards, business owners are asking “Should I be investing in people or equipment or in a building that my business could occupy?” For many of my clients, the answer is yes. But with many businesses recovering from tight cash flow the past year or more, it’s difficult to look at certain opportunities as an investment, not just a cost.  

    I have one client that is looking for a building, admittedly a unicorn type of building. One that has high ceilings and special power to meet the requirements of his business. Another has reached capacity at his current plant and is thinking about making a significant investment in a piece of equipment and building a second location for his business. Another is adding sales people and making leadership position investments in a VP of Operations and a VP of Finance. 

    At first, they look at these expenditures as costs or expenses, but for many, they’re investments. Why?

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