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Key Takeaways Think like an investor when evaluating business purchases. Investors ask questions like “What will this purchase generate in financial returns, time savings or operational efficiency over its entire lifespan?”
Before evaluating any purchase, ask: What problem does this solve? What return do I expect? What does success look like?
Don’t skip due diligence, use structured evaluation (not gut instinct), look beyond the sticker price, validate claims with evidence, and know when to walk away.
Every purchase you make as an entrepreneur is an investment decision, whether it’s for a one-time $500 software subscription or a $500,000 equipment lease. What differentiates the successful founders from the struggling ones is how they approach each decision.
Casual spenders leak margins over time, while founders who spend consciously build sustainable, profitable businesses. The key is learning to frame everyday spending through an investor’s lens.
The difference between spending and investing
Spending and investing mean different things. Spending solves a short-term problem, while investing compounds value over time. When you spend, you are exchanging money for immediate relief — a quick fix that disappears the moment it’s consumed. When you invest, you’re deploying capital that generates returns well beyond the initial transaction.
A common mistake founders make is looking only at the ticket price when evaluating ROI. True investors ask more nuanced questions: What will this purchase generate in financial returns, time savings or operational efficiency over its entire lifespan?
Start with the investment thesis
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