By Becky Mollenkamp, PCC
One of the questions I get asked a lot is, “where do you spend money in your business?” Or, more specifically, “which business tools do you use?”
It’s a great question. I’m a big fan of running a lean business. I teach my coaching clients about creating a minimum viable product to start making money as quickly as possible, and spending only on things you really need.
I went years DIY’ing all sorts of things, like using an Excel spreadsheet for bookkeeping and manually adding content across my social media platforms. I kept nearly 100% of every dollar I earned.
A few years ago, however, I couldn’t sustain that approach if I wanted to level up (and I was ready to level up!). So, I hired an amazing virtual assistant and started handing over a lot of administrative tasks. I also started making educated investments in a variety of tools (see below).
Before I give you the rundown of the business tools I use and how much I spend, let me offer a little food for thought. If you’re still bootstrapping #AllTheThings in your business, consider this:
Not spending money may be costing you more than you realize. Let’s say your hourly rate is $50. If it takes you 5 hours to manually post to Instagram, Facebook, and Twitter, that’s $250. If a social scheduling tool costs you $20 a month, and a VA would take 2 hours to load it up for $60 a month, that’s $80. So … $250 vs. $80 … the decision now seems like a no-brainer, right?
It’s hard to part with money, especially for something you could do yourself. But if you actually think through the time you spend vs. the low costs for automation tools, it quickly becomes clear these programs are worth their weight in gold.
Here are the 7 tools that I’m willing to hand over money for every month (that’s saying a lot because I love my money!).
Also, I’m totally transparent. There are affiliate links for each of these business tools. You’ll pay what you would anyway, but if you sign up using my link, I get a small reward (typically in the form of a free month or discount on my fees).
I launched my first course in 2017 and thought about bootstrapping it using YouTube and a password-protected page on my website, but then thought better of it after chatting with other more experienced course creators. I started on Thinkific, but in 2018 I upgraded to Podia. You can read here why I made the switch, but in short I’ve become a die-hard Podia fan. It allows me to host my courses, sell digital downloads, and manage my membership community. It does more than the competition and costs less. You can’t beat that.
It took me years to finally admit I needed a customer resource management (CRM) tool. The truth is, though, I was so sick of manually sending my coaching clients applications, welcome emails, invoices, contracts, homework assignments, and more. Honeybook now automates all of it. I have a custom workflow that handles everything from the point of a client inquiry to their end-of-engagement survey. I can’t even tell you how much time this saves me each month, so it’s absolutely ridiculous that I waited so long to spend a measly $40 to do it (and it’s less if you pre-pay for the entire year. If you need a CRM, use my link to get 50% off for your first year. No more excuses!
Investment: $40/month (save money with my promo code)
I finally stopped my Excel spreadsheet madness and started using QuickBooks like a grown-up business owner. It integrates with my business bank account/debit card so I don’t have to remember to manually track expenditures anymore. I can categorize income/expenses and it adds repeat items automatically. I also use it for invoicing, which is leaps and bounds better than my old-school method of making them in Word and tracking them in Excel.
I really resisted paying for a scheduling system. Why pay when I can just add events into my iCal? The truth is I have a ton of appointments—virtual coffee dates (integral to growing your network), interviews for my podcast and for the masterclasses for my membership community, and discovery calls for my coaching work. Managing all of that was cumbersome back when I had to go back and forth via email to nail down times with people. Now I can just send a link and they can book themselves into my calendar. The system sets different available times based on the type of appointment, and it integrates with my iCal and my Gmail, so I can easily block off time without having to go to the Acuity site.
When I started my email list in 2016, I used Mailchimp because it was free and easy. As my list grew, I wanted to do things like automatically send my opt-ins, create automated welcome and sales sequences, and segment my list based on purchases. That’s when I switched to ConvertKit. I paid someone about $200 to help me set everything up, but now it’s pretty straightforward to add new opt-ins and sequences, write regular newsletters, and manage my subscriber list. Also, paying for a list based on its size has made me more inclined to prune cold subscribers on a regular basis (something I never did before because I was so caught up on vanity metrics). Now my list is more engaged than ever, with an average open rate of 40%.
For the longest time, I used Skype (free) for video calls. The problem, though, was figuring out how to record those sessions if needed. Also, they didn’t allow for group calls. I like to provide recordings of my coaching sessions so my clients can review them as needed. Also, I host virtual co-working and masterminds for my membership community, so I need to be able to host dozens of people. Enter Zoom. This very cool, and super affordable, tool solves all my problems. I also used to use it to record interviews for my podcast.
I don’t know if I have the words to describe my love for SmarterQueue. I’ve been using Hootsuite for free for years, and I hated the idea of paying to schedule social media posts. I only switched to this program recently, and it’s already my favorite tool. It replaces everything I managed on Hootsuite (Facebook page, Twitter, and LinkedIn), plus can manage Instagram and Pinterest. What’s so great about it? You can create content categories—tips, blog posts, quotes, as examples—and fill them up with evergreen content. Then you can let those posts recycle as many times as you want. There’s also a cool drag-and-drop calendar where you can plot out which categories will be used at which times on which accounts. Like, seriously, this thing is so incredibly robust for the price. I can’t get over it.
In all, I spend $227.98/month on tools for my business. At a billable rate of $250/hour+, I’d have to handle all of those tasks in less than an hour a month to make it worth the DIY route. Impossible.
If you’re reading this thinking, “Oh boy, that sounds familiar. I am totally DIYing things I shouldn’t,” then take my advice and start investing in your business. It’s really true that you have to spend money to make money. Just be sure to spend it wisely!
If you’re a paper planner kind of person like me, check out this list of my favorite planners.