More often than not the thought of spending money on an intangible intellectual acquisition to improve productivity, market share or financial reporting is an unattractive option to the SME owner.

Almost always, the value of such items can’t be seen through the hazy windscreen of the SME budget. We are all proud to show off our wealth by picking up the swollen drinks tab at the country club or throwing a party at the beach cottage yet can’t bear the thought of having to spend just a fraction of the annual entertainment budget on advice, systems or similar “grudge” expenses…

You only need to endure a conversation at said country club for a brief period to hear of the woes experienced by many a punter in fending off creditors, disappointing staff with token bonuses and how the terrible economy has nearly caused them a hospital visit.

That’s because the everyday little life luxuries are relatively small amounts that go almost unnoticed, 100 here, 1000 there… no big deal. Spending some money on your business’s brand, staff education or hiring an advisor is likely to be a large chunk to swallow at once, even if it’s a relatively small amount on the annual income statement.

As SME owners we need to be able to see the long term effect of our spending habits, what might sound cheap and “no big deal” now might add up to a small fortune by the end of the year and come at the price of any expansion plans. Conversely, a chunk of change spent on some real change might be the difference between staying local and growing national!