6 things I learn about Money

6 things I learn about Money

Money is REALLY important to an entrepreneur, especially more so when you are on your own (i.e not living under your parent’s room).

We are not talking about major fund injections into your business, but simple daily operating expenses such, expenses to travel and meet with clients or simply buying coffee for your clients. Though not huge, they add up.
Money is something most entrepreneurs wannabe don’t really think about when going down the rabbit hole of entrepreneur nirvana.

In my entrepreneur journey, I see money taking on a whole new form. Below are six things I learn about money.

#1 Money is a lifeline

Money is to life as gasoline is to a car. Without it, you wouldn’t go far.

Without a regular paycheck now, you will find your savings depleting quickly till there is nothing left. This becomes dire as you need to keep your business and dependable (i.e., children, parents ) afloat.

Monthly overheads do not disappear overnight just because you are now an entrepreneur. The rental or mortgage still needs to be paid. The necessities of life (i.e., utilities, internet, and mobile charges) are still there, and without fail, the associated bills will appear in your mailbox each month.

To add on to these woes, running a business requires money. If you don’t have money, in time, your business will soon cease operation.

#2 Money dictates your lifestyle

Without a regular income, you cannot spend as you wish. You start scrimping to save money for a rainy day or deploy it more effectively. Instead of that lavish meal, you now consume what is enough to get by.

To raise cash, you might have to your car and take public transport. Some even sell off their home and become rental tenants.

Lastly, your mental focus is no longer on that summer or year-end vacation, but how you will get by.

#3 Money is a resource

Money is not only used to buy things; it also allows you to fund things to get you and your business going. You can rent an office space, attend a course, purchase software to automate things, etc. With money, you can hire people to do things you cannot do.

Without money, you will feel constrained. You will have to do many things yourself. This will reduce your time and sap your energy to do strategic work.

#4 Money buys time

When you are a struggling entrepreneur, you will come to feel that money truly buys you time until your business can turn a profit.

With the onslaught of bills every month, you now appreciate the time value of money. You now value money in terms of months. You will understand how many months you can get by before you run dry in the bank.

#5 Sources of Money

Until you become profitable, being able to fund your business and lifestyle is essential.

Knowing your available options is critical in understanding how much time you have to profitability.

It is best to make a list of your funding options and understand the associated cost of funds and payment plans.

#6 Money brings the humanity out of you

Having lived a life with limited or no money makes you more frugal and not spend on unnecessary items. Living the simple life is the call of the day.

It makes you appreciate those who are in the same predicament. Now whenever you see someone struggling now, it strongly resonates with you as you have been there yourself. Hence you can clearly empathize with them much more than others.

 

While passion is essential in running a business, you, however,  cannot discount money.

Be prudent and do your math before jumping into anything. Otherwise, you will quickly find your dreams turning into a nightmare.

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