# If You Had a Big Chunk of Cash to Throw Into Your Business......



## barringerfurniture (Sep 17, 2013)

I know this question has the potential of sounding like I'm asking for advice. I'm not.

For those of you in business full-time, if you were handed, say $10,000, and the only obligation attached was to invest it in your business, how would it be allocated?

New equipment of some kind? Advertising (if so, how)? New shop space? Pay off debt?

Again, not interested in advice for me. I want to know how YOU would use it, given your particular craft/business and circumstances.


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## jumbojack (Mar 20, 2011)

#1 pay off debt
#2 allocate 10% to advertising 
Business cards
Facebook 
Entry fees to competitions. Ie State, County Fair
#3 Exotic materials


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## jesinfla (Apr 15, 2015)

Advertising, advertising, advertising…
Specials, specials, specials…

Local Radio and Local Television mostly, make sure website is mobile compatible (which mine are) - I know a lot of people use social media these days like FB, but my business lends itself to be local and while some of the social sites can do a quasi local reach, it misses a huge portion of the local population that local radio and TV reach and who have money to spend which is my target audience.

I'm not in business to reach the unemployed, I need paying customers over 30 with good jobs and enough disposable income to buy product.

That's my 2cents worth


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## barringerfurniture (Sep 17, 2013)

Great responses so far and exactly what I was looking for. Advertising seems to be at the top of the list and I've heard that from many other business pros. Maybe it's obvious.

Any opinions about ads in local papers and publications? In my case, I know a few local publications that are specifically distributed in neighborhoods that are affluent, well-established and have some taste toward fine work.


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## bigblockyeti (Sep 9, 2013)

Equipment & advertising, word of mouth works well, but acquiring new customers can be time consuming & expensive.


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## Yonak (Mar 27, 2014)

I don't know if $10,000 would do it but I would buy a CNC machine. ..Or, possibly, an etching outfit.


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## ArlinEastman (May 22, 2011)

I would have to prioritize everything and have a few people check it. Then I would go down the list until the money ran out.


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## waho6o9 (May 6, 2011)

Pay off debt

CNC


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## Daruc (Apr 20, 2015)

I would just put it in the bank for extra cushion for emergencies. 
If running business correctly all the advertising should already be in the budget.


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## FellingStudio (Oct 17, 2013)

This has the makings of a fun game …

First off, moving to a new shop space is out of the question until such time as there is enough business to require additional shop personnel. (If it were $100,000 on the other hand, I might take a flier and go with the build it and they will come approach, move into a new shop with new machinery, and hire a helper.)

Upgraded machinery is a possibility for part of the money if it increases efficiency or capability and still fits in the current shop.

The rainy day fund is certainly a sound option.

But, if you want the business to grow, you gotta find new accounts. Now, not being the best presser of flesh, and not being a great salesperson, with that kind of money, I would be tempted to hire a salesperson or sales consultant. Of course, it would have to be the right kind of person and they would have to show results to keep their job. Ideally it would be somebody who hobnobs with the kind of folks who have the income to afford custom furniture.

The other option is to throw it at marketing. That's enough cash to be able to afford a booth at one of the juried art shows, which could be just the thing to push a guy into a new shop and a helper. Even if there are no sales at the show, it should generate commissions throughout the year.


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## JAAune (Jan 22, 2012)

I'd finish off the dust collector and spray booth install, invest a couple thousand in marketing (conferences, shows, business trips and/or website and periodical ads), then use the rest to take off the pressure of overhead and devote a month to a serious kaikaku-style shop reorganization.


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## jumbojack (Mar 20, 2011)

As a HAND TOOL.guy have you considered a YouTube presence? Videoing your process and leaving links to your site might generate some business. That guy Chris does a really fine job with his channel.


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## wormil (Nov 19, 2011)

New Location


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## MagicSawDust (May 27, 2015)

Very interesting question.

I guess for me the best thing would be to invest in my education. That would be something nobody could take away from me.

Paying off debt is a great idea. There is the question of good debt and bad debt - good debt being the kind of investment that generates an income. Not a good idea to pay of good debt - that's using other peoples money (e.g. the bank.) Good debt is what makes the world go around.

The question for me at the end of the day is "How can I turn $10k into $100k"


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## roman (Sep 28, 2007)

paying off debt ?


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## roman (Sep 28, 2007)

hired for the specific

be afraid : )


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## CharlesHeilman (Feb 11, 2015)

Too much interesting question for me so here are some steps to follow :
Firstly, i pay off debt,
Start PPC Champion of my business on Google analytic tool and facebook ads


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## Puzzleman (May 4, 2010)

I would invest the money in marketing the business. Unfortunately, $10k would only just cover 1 good trade show. By marketing the business, you are investing in the future of your company which will yield rewards such as contacts and orders.

Next I would invest in machinery. If you have any needs that increase production would be an investment for the future. That way you can handle the increase in orders from the marketing without working harder.

Third, I would pay down debt if the first 2 are good to go.


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## TheWoodenOyster (Feb 6, 2013)

I would switch from renting to ownership in as many areas as possible. Whether that be machines or shop space.

If that was done, I would take the time to make 2 or 3 pieces that I wanted to make for years, but never could because I was fulfilling client orders. Then I would put them in a high class show so that people saw them and hopefully liked them. Then I would hope to get more orders for things that I LIKE to build, not just orders for things to put food on the table.


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## Dabcan (Feb 1, 2011)

I'm finding right now my biggest issue is I'm so busy making repeat orders for wholesale or for sales, that I don't have time to dream up new things. This may sound odd, but if it were me, I'd take the money and use it to pay bills and take some time off my current projects and work on some new designs and products that I'd like to make. I'm trying to move my business from small boards and kitchen items into small furniture pieces, and more time would be awesome. If I had the money to pay bills then I could take time to build, dream, sketch, etc.


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## Blackie_ (Jul 10, 2011)

I used a partial of the money I made in sells last year to add an addition onto my stand alone shop in the back yard, it went from a 12'x16' to a 12'x24' the rest goes into savings.


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## helluvawreck (Jul 21, 2010)

Don't spend all of the money. You are going to need operating capitol and before you spend any money do a lot of thinking about it. Look at all of the angles and spend some time doing some research. There are plenty of things to think about.

I would add one more thing. If you are going to operate a business out of your home you need to read your insurance policy several times and then ask your agent some hard questions. If your business were to cause a fire or other disaster you might have some bad surprises about how the insurance company responds to your disaster. It is best to take care of these problems before you even begin to begin.

helluvawreck aka Charles
http://woodworkingexpo.wordpress.com


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## WoodNSawdust (Mar 7, 2015)

I would split the $10,000 with about half going for a new tablesaw (SawStop 5hp) and the rest to pay a professional to redo web site and Facebook. Even though both the web and Facebook are international in reach the younger crowd expects a well designed Internet presence and I don't have the experience / knowledge to design it.


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## Yonak (Mar 27, 2014)

> If you are going to operate a business out of your home you need to read your insurance policy several times and then ask your agent some hard questions. If your business were to cause a fire or other disaster you might have some bad surprises about how the insurance company responds to your disaster. It is best to take care of these problems before you even begin to begin.
> 
> - helluvawreck aka Charles


My insurance company offered me a rider on my homeowner's policy to cover damage, injury to any workers or subcontractors I may have and product liability. I believe it would also cover reimbursement for any serious downtime, but I really haven't looked into it as I would never claim such an event.


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## SamuraiSaw (Jan 8, 2013)

A lot of variables go into this question. So much depends on your situation. In my case, we are a debt free company. I've worked really hard at maintaining that. We upgrade equipment as needs arise, having just installed a new (to us) cyclone dust collector and spiral metal ducting. Advertising and proper web presence is our current weak spot.

If you have debt, I'd say use a portion to reduce or eliminate it. Unsupported debt will drown a company.

Would better or newer equipment allow you to deliver product faster or with higher quality? Time is money and if you can improve your output with additional or updated equipment then that is a cost effective investment.

Marketing is highly subjective. I get "attractive" offers on a weekly basis to advertise in various publications, and I politely turn every one of them down. They don't serve my primary market. You have to first identify your primary market and then determine the most cost effective method to reach them. At minimum, a professionally styled logo and a well designed web page are needed. Optimizing your site for SEO can be done for a small investment and will pay off almost immediately. We've limped along for over a year with a place holder web page and minimal exposure. All that will change in the next couple of weeks.


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