Test Before You Invest

Making smart decisions about where to allocate your time, money, and energy is crucial. One of the best strategies I've found is the principle of "Testing Before You Invest." This approach can be applied to various aspects of life, from personal relationships to business ventures and marketing campaigns.

Testing Relationships

Before you dive deep into any relationship—whether personal or professional—it's essential to test the waters. For instance, before committing more time, money, and energy into a relationship, I often test compatibility by spending time together in different settings. This could mean going out for dinner, attending events together, or participating in activities that reveal how well we work as a team. If these smaller interactions go well, it indicates that the relationship has the potential to thrive with more significant investments.

Business Collaborations

In the business world, jumping straight into a full-fledged partnership can be risky. Instead, I prefer to start with smaller, one-off projects. This allows both parties to gauge the working relationship and understand each other's strengths and weaknesses without the pressure of a long-term commitment. If the initial projects are successful, it sets a solid foundation for a more extensive business agreement, reducing the risk and increasing the likelihood of success.

Marketing and Advertising

When it comes to marketing, especially with paid advertising, the "Test Before You Invest" strategy is invaluable. For our agency, we begin with a small budget—say $2,000 to $5,000—spread over a few weeks. During this period, we run multiple ad campaigns with different creatives to see which ones perform best. Once we identify the top-performing campaigns, we scale up the investment. This method ensures that we allocate larger budgets to campaigns that have already proven successful, maximizing our return on investment (ROI). For example, we've had campaigns where a $5,000 daily spend resulted in $60,000 in business—a 12x return on ad spend!

Investing in Startups

As an investor, before putting my hard-earned money into a company, I thoroughly test the relationship with the founders. I assign them tasks and observe how they handle guidance and execution. If they demonstrate reliability and competence, I gain confidence in their ability to manage my investment effectively. This step-by-step approach helps me build trust and ensures that I'm making informed decisions.

Testing before investing is a valuable strategy that can be applied to various areas of life. By taking the time to assess and evaluate before making significant commitments, you can increase your chances of success and minimize potential risks. I encourage you to adopt this approach in your endeavors and see the positive impact it can have!

Here's To Your Success!

Best,

BTA