“Don’t spend more than you earn” A very wise statement but a very difficult one to follow both in business and in our personal life.
In business we feel that we have to risk spending more than we make in order to grow our business. We stand in awe of those few people who have succeeded beyond our wildest imagination when risking everything. Notice I used the work “few”; of the new businesses that are started over 80% will fail within their first five years. The owners will lose a lot of money which not only affects their business but also spills over into their family lives.
In my opinion , most businesses fail because they fail to plan. A business plan should be wrapped around a working budget. Spending money is not the only way to grow a business and to build a solid foundation. These past few months I have included many ideas which can be incorporated into a marketing program at little or no cost. A small business should strive to fund itself and build that surplus that may be needed in the future to accelerate growth.
Creating a budget and the disciplining ourselves to follow it is one of the most difficult parts of growing a sound and profitable business.
Both at a business and family level, I strive to create a feeling of great importance when preparing a life budget plan. By visiting monthly with clients and holding then accountable for their budget and the plan that they have created, a business can be grown and funds can be sent ahead for retirement.
“The greatest obstacle to discovery is not ignorance —- it is the illusion of knowledge.
Have a great day!