Having embarked on your entrepreneurial journey – you must be very critical while spending money for an initial period of 2 to 3 years – irrespective of the fact that it is your own money or borrowed money. Even after 2 to 3 years when your business is well established and is running well, it is nice to remain financially alert, frugal, and prudent. I am not suggesting that you be a miser and/or have a narrow focus or short-term perspective of things. All I want to say is that you must always do the necessary cost-benefit (either a quick verbal check or a structured study) of any aspect, offer, or proposal before making any financial commitment. The application of the cost-benefit concept should not be limited to only fixed assets. It is a versatile concept and should be applied in all situations whenever and wherever a cost is involved. Always ask – what is my cost? and what benefit do I get?
Here’s what Thomas Sowell, an American economist and social theorist, has to say:
WHAT DO YOU THINK?
Let me know in the comments section.
In this ongoing series #GreatMinds on my blog, I am shining a spotlight on the important ideas that some very successful people keep talking about in their public life.