by Thandekile Moloko, Wealth Coach & Wealth Manager
Scaling, which is also synonymous with economies of scale, is a business term which in its truest form means expansion. It is being able to be profitable when demand has increased for your services or goods. It is the ability to increase supply and still maintain or reduce costs. In scaling your business, you need to make sure that your expenses work for you and produce the ultimate profits.
This is a term and mechanism to grow and expand your business. It is important that you receive the best fruits from the costs that the business incurs, whilst still servicing the demand. It also warrants that the business should manage and monitor expenses for the intention of increasing the bottom line of the business.
I want you to take a second and think of yourself as a business. Quite frankly there are similarities between your individual goals and that of a business. You want to reduce your expenses, you want to increase your income and savings, you want your finances to run like a well-managed business and most importantly you want to expand and create wealth.
Here is how you can make this possible in 5 steps:
1. Make Rational decisions about your money
Whether you are in business or looking after your own or family’s finances, you need to be rational about the decisions that you make. Its best to stay away from making impulsive financial decisions, making emotive decisions and making decisions in a rush. Create a plan and stick to it.
2. Always make sure that you are getting value for your money
Spending income created, on lavish splurges, increasing your wealth creation? Buying something expensive now can cost you opportunities. Opportunities to make lots more money for your personal expansion and to create wealth.
3. Time is money
Always value the resources that you have. One of the most important resources that you have time. Make sure that with your time you are doing things that will benefit you (financially and personally). If you have placed monetary value for your time you will be able to apportion your time according to what is important to you.
4. Team work makes the dream work
Like in a business, there are various functions within our personal lives that need to be carried out by someone other than ourselves. There are vast number of professionals that assist us to efficiently carry out certain parts of our lives so we can concentrate on the core function that makes us happy and generates revenue in our lives. Find professionals and people that can assist you to achieve your goals.
5. Understand where you want to be
There is no reason to expand if you do not understand where you want to go. You need to clearly define your goals and then devise a strategy as to how you going to get there.
While scaling can seem daunting all you need is to understand what you are trying to create. Are you trying to create a comfortable life? Create wealth? Or even chase summers all year round. Once you know where you want to be, always manipulate your current situation to achieve your expansion which will then lead to growth.
Thandekile Moloko is a Wealth Coach and Wealth Manager by profession. She went to the University of Johannesburg. She studied Bcom Finance and Honours in Financial planning. Her love for people and changing people’s lives lead her into the financial planning. Thandekile was requested to be part of the ASISA (Association for Savings and Investment South Africa) program to enhance financial planning as an industry. She encompasses tenacity for finance, especially wealth management and personal financial management. With insurmountable experience gained in the industry, she has blazed the market with her expertise within the financial planning industry. With the intent of reaching a larger audience, she decided to increase the scope of her work into Wealth Coaching. In her Wealth Coaching career, she has changed many people’s lives and she changed the landscape of wealth management to be inclusive of those that need it the most. She is an avid believer in changing lives one financial situation at a time. WEBSITE / LINKEDIN / TWITTER