Why Having Lots of Money to Spend Doesn’t Guarantee Success

Sira Anamwong

To buy or not to buy, this is the question of some desperate organizations with large sums of money to spend. The thought is that the more money a company has to spend, the more successful it will be in the marketplace.  Interesting thought, but the conclusion is not always true.

Large sums of money can guarantee growth and prosperity, but only if it is used wisely to invest in those entities that can work together to advance the organization. Many companies have failed because they have invested in the wrong things at the wrong time.

For example, if a company purchases a piece of expensive technology that no one ever uses because the staff hasn’t been adequately trained to use it, the technology is useless. So it sits there collecting dusk month after month and year after year while your organization loses money.

Investing in uncertain stocks or doomed bonds with the hope of a miracle happening is another example of spending money at the wrong time.

Spending Wisely

In order for a business to be successful, large or small, it most knows how to spend and manage its money so that it will profit even more in the marketplace.

Having large sums of money is a great advantage for companies who have it. However, an organization with less money and who uses it wisely can proper more dramatically. The key is using money wisely.

Investing in people and equipment that is going to help move the organization move forward for years to come is a good investment. Let’s take the cloud, for example,  if a company invests in cloud technology, such company can be certain that it will save massive amounts of money because it no longer has to buy expensive software or purchase servers costing tens of thousands.

The Cloud: Great Investment

The cloud does everything from keeping an organization’s information safe and secure to providing access to that information 24 hours a day and from any location in the world.

What a magnificent piece of technology!

But investing in stocks that are about to fade into non-existence is a huge mistake. You will certainly lose money due to irresponsible spending.

Saving money is as much part of success as spending money for the right reasons. The more a company’s reduces cost while still providing quality products or services, the more money it makes for investing in more worthwhile things. And the more cushion it will have in time of financial emergencies or recessions, like the one that started in 2008.

The appropriate time to spend money is when the risk could promise big rewards.  Investing in stocks that are predicted to go sky high in the coming years is a great investment. Also investing in real-estate that is designed to be a part of an expansion is another worthy investment that will pay dividends to you and your shareholders for years to come.

However, you must avoid shaky sounding deals with sellers who are desperate to get rid stocks and bonds or a shady real estate that may be about to be claimed by the city or government. Do the research and do it well if you desire to come out winning.