Bad Credit Business Financing: Knowing When to DIY and When to Pay a Pro
The financing of a small business is a delicate thing, and naturally some areas of a business will require a larger share of it than others. The trick to balancing a budget is figuring out what parts of the business need more funding, and which can continue to function with less. In the interest of advancing the latter, business owners will often turn to DIY, or do it yourself on projects. In an of itself, DIY recommends itself to the purposes of small business owners quite well. They often have a wealth of experience in diverse areas that can allow them to tackle projects independently. However, there are some aspects of running a business that, if they are mismanaged, can create serious problems for business owners. In the interest of managing their budgets, here are some ways that small business owners can effectively identify areas where they can cut costs with DIY, and where they should probably invest in hiring a pro. A note of caution, however. If business owners hire contractors, they should spend enough time to find someone who is actually qualified lest they spend more money on a job that they could have done better by themselves.
Do you have a background in the area that you are going to DIY a project? Some projects are so easy that anyone can do them as long as they follow instructions, while others are difficult to manage without a technical understanding of the subject matter. If you feel that the project you are going to handle has little to no requirement for technical knowledge, then a DIY approach might make sense. If, on the other hand, it calls for a certain amount of expertise, then be honest with yourself whether or not you have what it takes to manage the project yourself.
What is the potential cost of failure if you do it wrong? If you think that messing up won’t cost you much, then trying to DIY could be a good idea since in a best case scenario, you save money and get a good quality finished product, and in the worst case you take a step towards knowing how to do something the right way in the future and don’t lose that many resources. On the other hand, if the cost of messing up a DIY project is potentially large for your business and you could lose a lot of money, think about whether it’s really worth it to bet that you can do something by yourself. If in the even that your DIY project goes awry, to cost of getting the damage you do reversed might meant that you have to give up whatever improvement you had originally hoped to make.
Would the cost of materials come close to the cost of hiring a pro? Some projects may only be marginally less expensive to DIY because of the high cost of raw materials. If the distance between doing it yourself and hiring a professional who will be sure to get it done the right way is not that much of a gap, then think critically about whether or not it’s worth it to cut the corner once you add in the value of your time.
Photo Credit to David Mellis on Flickr