With the financial economy at its worst and the buying power of businesses and individuals at an all time low, we need something other than the ‘gut feel’ to judge our buying decisions for those new business items. Here is a simple yet effective formula to help you make those purchase decisions.
W = How much do you WANT this item (1 – 10) 10 being new sports car
N = How much do you NEED this item (1 – 10) 10 being a new liver
I – How good an idea is this to have (1 – 10) 10 being will open up a new untapped market
M = How many months have you taken to select and research this product
S = Your monthly income into your business
B = Your monthly bills and expenses
R = Your monthly rental or bond payment
$1 = Your current balance in your business account
$2 = The cost of the item
Substitute the values and compute the equation working from within the brackets outwards. If Buy is greater than 1 then go shopping. If you fudged the values just to justify your expenses then do not give your business partner my email address, this one is on you. Enjoy.
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