People talk about money. Business people talk more about money. They speak from their experience and we are lead to believe their words are pearls of wisdom. But here is money talk that you must not pay any attention to:
- You should have a good amount of finance. Finance can be acquired from loans, overdrafts and investments. If you focus on finance, you will also invite liabilities in terms of taxes, interests etc. Rather, focus on generating income, and related activities.
- You should have financial estimation for a period of 5 years hence. Financial estimation depends on various factors that may or may not be in your control. Instead you could create estimates and plans based on your target market.
- You should expect good amount of profits only when you launch a big offering that takes over the industry. Big offerings imply that you will already have big competitors. Instead look for gaps in the market that are not being serviced and create offerings accordingly.
- You should bring down costs by giving jobs to your relatives or well-wishers. When you make such emotional choices, it will reflect in your business. It will be difficult to delegate, manage, and control your business processes, as you will be constantly worried about hurting everybody’s feeling and in effect spoiling your relations with them.
- You should devise a pricing strategy that hurts your competitor. When you decrease your price, your profits too will come down. Instead, charge a good price for your offerings by building on its USP and you will not only make profits but will leave your competitors way behind.
- You should solve problems with the help of financial solutions. Instead try innovative methods and processes to solve problems. Lateral solutions work best when you decide not to spend any money on solving a problem.
- You should take loans to fund your business constantly. When you are constantly in debt, your profits come down. You stop looking for solutions and your debt increases. Instead look for ways to generate means that help solve financial problems.
- You should be the last one to be paid. When you do not regularly pay yourself, you begin to feel all your efforts are futile. You are not able to enjoy the fruits of your labour. Pay yourself regularly.