Your business success will not be determined alone by your ability to make more money, it will also be defined by your ability to cut unnecessary expenses.
You don’t need to look further, that quote originated from me.
I think I deserve applause for that. abi what do you think?
We often focus more on making sales and profit than we realize that the actual test of a business is not measured by what they earn alone.
We also need to factor in what you can save.
In the corporate space, every employee is employed for three basic reasons, which are;
How their involvement with the company helps the company make more money.
How their involvement helps the company save more money.
How much of a good fit are you to the brand?
Now to the subject of the matter, you should curb lifestyle inflation in your business as a business person.
Lifestyle Inflation simply implies the rise in your expenses as your income grows.
You can curb or avoid this inflation by doing the following;
Have a budget
You should have a proposed budget for your business operations. It will help you keep track of your income and expenses so you can make sure you're spending within your means. Don't spend as you earn. Develop a budget that fits your business earnings and be disciplined about it.
Track your spending
When you track the flows of your expenses, it will help you discover where your money is going and areas where you can cut back and adjust.
Separate your business money from you
Refrain from investing your business money for your personal use, keep in mind that your money may be your business money but your business money is not your own.
Develop financial consciousness
Having financial knowledge of how your business finances run will help you set long-term and short-term financial goals for your business, you cannot escape finances if you are a business owner. Please brace up!!
Finally, have you joined our WhatsApp community?
If not, what is stopping you?
Very soon, I won’t write about it again, because the group will be filled up in a matter of time.
I should appreciate everyone who took the time to join us.
If you are still interested in Joining us, we’ll be more than delighted to have you via this link.
You can reach me via alex@lagos-sme.com
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