5 March 2018
When you start up a business the focus is inevitably on selling, selling, selling. Your sights are set on breaking even, on generating revenue. But, are you as focussed when it comes to being profitable?
Profit doesn’t just come from the sales team. You have to be savvy across the whole business.
Benjamin Franklin reportedly said: “A penny saved is a penny earned.”
Being frugal is absolutely, unequivocally one of the most important part of any growing business. Imagine if you could go back and collect every single penny or pound that you’ve ever spent. How much more money would you have had?
Save, save, save!
In the early days, when you’re struggling to break even, it can be hard to see other businesses with their fancy offices, amazing work perks and huge marketing campaigns.
I am seeing so many business owners fall into the trap of giving away shares in their business to raise funding for these things. I have to question, in the long term, is it worth giving away a slice of your business so that you can afford to by fancy chairs?
Throughout every stage of business, being frugal truly does reap rewards. We were incredibly frugal in the early days. We found ways to cut costs, to take control of our supply chain to control costs, while maintaining service level and ensuring our team is happy and developing.
There were times that Gail and I would go without a proper meal so that we had enough money to pay the team and our bills. But, by being that frugal, we were able to hold on to our business. Too many firms see Dragons’ Den and sell huge portions of their business early on. You have to ask yourself, is it really worth it and is it the right time?
Profit doesn’t just come from making more sales, it comes from every decision within the business.