Finances: Personal issues

Borrowing money makes you a slave of the lender

Business finances are a reflection of the personal finances of the founder.

If you are unable to manage your personal finances, it is going to be a challenge to manage your business finances.

Just like Lotto winners, entrepreneurs believe that their personal financial problems will be go away once their businesses thrive.

Unfortunately, it is not that simple.

You will have to be disciplined with your personal finances first so that you can manage your business finances in a disciplined manner.

Financial discipline starts with you the owner, and then transcends to the business.

Your business is a reflection of you. If you are sloppy with your personal finances, your business finances will also be sloppy.

If you look at corporate scandals, Enron, Barings, Steinhoff, they all have several things in common, number one being greed, closely followed by flashy lifestyles of the founders, who were excessive spenders.

If you are a spender, your business is going to be a spender.

If you are prudent with your money, your business will be prudent with it’s finances.

Work on your personal money issues, your business is not your rescue plan, your business is an extension of you.

PS: To overcome poverty, we have to eradicate a consumer mindset and develop a producer mindset.

 

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