English football savant George Best was once asked what happened to all the money he earned as the worlds greatest player. In classic Georgie style he responded:
“I spent a lot of my money on booze, birds and fast cars, the rest I just squandered.”
If we’re in an early phase start up or we’ve just made bank, the principles don’t change. If you can control your spending, you can control your business and your life. It’s easy to justify expenditure at either end of the business spectrum. A start up can convince themselves they’re investing for growth. Likewise, a booming business with big profits can fly first class and hire private yachts to impress clients themselves.
Quite often over spending is due to a real lack of creativity and an inflated ego.
Startup blog advice is this: Cash flow is vital and by being creative we can ultimately conserve cash flow, yet generate similar results.