in Business & Leadership

Entrepreneur’s Lesson: Be Frugal, Avoid Temptations

Frugal To the Max

Frugal To the Max

When you are starting your own venture, be frugal. Whether you are putting in your hard-earned savings or have investor backing, take care of every penny you spend.

Cut down on:

  • Fancy office setups & employee facilities
  • Expensive hardware, software, equipment and gadgets – you don’t need to flaunt
  • Number of employees – work with small number of talented, all rounders
  • Traveling and related expenses – use VoIP / Video conferencing
  • All expenses!

Staying cashflow positive should be the number one priority for a startup. Bootstrapping is the best entrepreneurial model. Do whatever it takes to generate your monthly cashflow from the business. Set a limit for yourself – you will never go cashflow negative for more than 2 months.

And once you get the cash, be even more watchful. It’s easy to waste money on promising opportunities / people / technologies.

Avoid temptation.

(Image courtesy Buster Benson)

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