I survive and make my living by selling yoga, which is basically just selling myself! How?
I manage my finances and live like a zen monk when it comes to spending.
The most important skill for a business owner is to manage money properly. Most businesses fail because they go insolvent and take on too much debt or expenses. Whether you are a small operator selling on the side or it is your full time hustle (like me), you need to keep track of finances. If you can keep operating with low costs and expenses then you can go for longer and then make more when things are good.
If you are selling anything and can manage to budget and live simply then realistically you can have a business for a long time even if you do not work on it that much. This is more true in the internet age when brands can be built with just an internet connection and some creativity.
In business you should be patient and disciplined and avoid emotional wants. Do not try to impress people and hustle in silence with strategy. Do not compare yourself to others either as you do not really know other peoples positions.
Remember that Australia is one of the most overdebted countries in the world when it comes to your average person. People may be flexing but if your debt to equity ratio is out of balance then you may not actually have freedom. Freedom should be the most important thing in your life and you should be working a business to make money, to have freedom, not to make money to spend money. If you are working to buy new things that do not make money then you will continue to live like a slave, regardless of your income.
I am seeing too many business owners lack freedom because as their income goes up they increase their expenses and liabilities. This is exactly what you should not be doing unless it is good debt that will produce positive cashflow.
As a business owner, managing your money is essential for several reasons:
- Financial Stability: By effectively managing your money, you ensure the stability of your business and can navigate financial challenges more confidently.
- Growth Opportunities: Proper money management allows you to invest strategically in growth initiatives, such as marketing campaigns or expanding your product/service offerings.
- Informed Decision-Making: Managing your money gives you the necessary financial insights to make informed decisions that align with your business goals.
- Risk Mitigation: By tracking your finances closely, you can identify and address potential risks before they become significant issues.
- Tax Compliance: Maintaining organized financial records ensures that you meet tax obligations and avoid penalties or audits.
Remember, by prioritizing money management, you set your business up for long-term success and financial well-being.
