Why Most Entrepreneurs Struggle Financially
The reason a lot of entrepreneurs and business owners struggle financially is not because of lack of clients.
It's not because of high operation cost.
It's not because of "village people".
It is because of poor money management.
Let me explain...
One thing you must learn to do whether your business is registered or not is to separate yourself from your business.
Those guys are not the same. Your business is your business. You are you!
You were in business, the first day you exchanged your product or service for money.
Every money you make in your business is not your personal money.
It is not money for shawarma or seeing the movies.
It is not money for flexing your "generosity muscles".
Learn how to pay yourself from your business.
So, if your business makes 100k, you can decide to set aside 20% as your salary.
This means that every time you earn money in your business, 20% is for personal use.
When that 20% finishes, you wait again until the next pay.
To make this more effective, have two bank accounts. One for business, one for personal use.
You receive money from the business account, you transfer 20% to your personal account.
Yes, it will require discipline. We're talking about your business here not how to ask a girl out.
When you do this consistently for a month, it becomes a habit eventually.
When your business starts making small money, your friends and family will start hailing you.
Friends: Hmmm... you dey fresh na... see as you dey chop money.
Family: All this your money where you dey keep am?
Your family will start demanding this and that. They'll start putting unnecessary pressure on you.
Everyone will suddenly start looking up to you to save them.
When your little brother has a problem, it is you they run to.
You become the saviour of the world.
If you give in to the demands you'll never grow. You will never make that first one million Naira.
When things fall apart, none of them will be there to rescue you.
They will blame it on your careless. Some people will suggest you go see a strong man of God.
If you want to grow as a young unmarried entrepreneur, learn how to be stingy to yourself, friends and family.
Let them call you "aka gum".
Take responsibility for your business finance.
That your business is making 500k doesn't mean you're rich.
Don't buy what your business cannot afford. Why spend so much on a thing that doesn't add money to your business.
Remember your basic knowledge of asset and liability?
Branding and packaging is good for business but don't do it at the expense of your business growth.
As a business person what's more important is making sales and profit.
All the branding and packaging means nothing if it's not in a way translating to money.
Remember that you and your business are two different entities.
You can be broke but not your business.
This is one of the secrets of wealth I learned from Brian Tracy.
It has been helping my business.
Never mix personal money and business money.
by Promise Excel (http://maverickexcel.com)
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