Financial discipline in business, is indeed the secret of success in Small Scale Business. Many start-ups die within a couple of years because the floaters lack discipline in financing. Spend as it comes.
The chances are that many of the youths would just be like I was during and after my NYSC. My income was just taking me a week to blow.
There were always ex
cuses to make. The salary was small; I was used to spending big in England as a government scholar and things like that.
And this was true because as the government was giving me money , my mum was sending money, good money and I was working part time.
So the money was coming and I was smoking and drinking it away.
Now that is indiscipline at the worst scenario. If I had had a wider view of life and be restrained, I would have done very much for myself then.
If you cannot manage N5000, you will not be able to manage N5million and that is the truth.
A man who cannot save should forget about being rich because even if you put him in the CBN vault and ask him to help himself he will end up a beggar.
If you are starting a business you cannot afford to spend like a guy who has made it or even a salary earner who has nothing at stake.
Surfing the internet, I stumbled on the write up below about financial discipline. I followed it and it has been better for me. I advise you do likewise
Cut down what you are already spending on. You can’t start a business being in a financial mess.
Cash Flow is more important than revenue. And you need to have lots of cash flow coming from your pockets if you are going to succeed.
Here are some things you can cut down on
SMOKING – if you can’t quit, just cut down on a few sticks
ALCOHOL – booze can drain your finances faster than a running tap
NIGHT OUTS – spend some nights at home thinking about making more money
GAMBLING – if you plan to gamble, it is better to gamble in a business
VACATION AND COUNTRY CLUBS – you won’t die without a few memberships
FOOD – eat healthily and you will even think clearer
LAZINESS – The biggest thing that will hold you back!
Most important of all, don’t buy anything that constitutes a liability. A liability is anything that takes money out of your pocket no matter what they are worth in the future.
Think in terms of cash flow. What can I invest in today that will give me funds tomorrow?