We recently thought about getting an office space for our small business then realized that it would go against what we preach at ilebet.com. There is a thing about being capable of self-efficiency. A business would need premises to use for serving its clients. It must also take care such that it does not get into debt for the sake of covering the costs of daily operations. In our case, the business is mostly virtual, and we can meet clients at different places.
Usually, we organize our product and then present samples that clients use to verify our capability of handling their needs. We have a virtual product, and the main activity of the business is sales. We realize, and we also have stories from people close to us who have huge businesses running losses. Their problem is taking money from their pockets to run the business. They have many bills to pay such as rent and the revenue from the business is insufficient. Part of the task of running a business is to learn from its and your mistakes then grow.
Nevertheless, there is no growth expectation when you are paying exorbitant rates just to say you are in business. Empires fall because of unmanageable debt. A business would not be so different. We are not going to mention the many businesses that eventually turn profitable after years of loss-making. Nonetheless, we can pinpoint a few that went under, the moment they took loans and money from their pockets to sustain something that was not going to pay back. They expanded too fast, and they could not hold it together anymore.
Unlike businesses, an individual is also likely to expand too fast and forget lessons on sustainability. Expanding too fast may include paying the first installment on a recurrent income such as school fees and rent with no knowledge of where the rest is coming from in the coming months. You know your income, and you know your other potential income sources, but as soon as you pay first and then seek the funds for the repayment, you are on the wrong path. At this point, we have to celebrate frugality because it forces you to re-evaluate your choices.
The lesson today is that you should check your priorities and your decisions about running your business. Make sure you are in a position where your expenses will be lower than the income. You should also consider the time you put into the business, including the commute as part of the expenses. They should pay back. Otherwise, it would be akin to spending your life to earn a living yet you cannot live the living you earn.