Conserve your profits for the future

Building a sustainable business requires careful, well thought-out planning for the future, and ensuring that precious money earned is made to work for the business, not wasted on unnecessary expenditure. In the early days, it’s essential to take a frugal approach to spending, knowing how to distribute money wisely and getting informed on how to best manage money kept in the business. There will be lots of temptations along the way, for example putting money into new product or platform development, which in theory is okay, but it’s essential to ensure that all the necessary research has been completed before going into production. A badly researched market landscape may result in the creation of products that simply don’t have the market size to be viable, and as a result, wasting precious time and resources. Try to stay nimble in the early days - it’s not about renting expensive offices or factory spaces, or hiring lots of employees, or buying expensive suits and cars. It’s about being agile enough to respond quickly and effectively to opportunities that present themselves, and keeping expenses to a minimum until those precious first customers, orders and cashflows start coming in. Conserving profits provides a much-needed cushion to prepare for growth and the inevitable challenges that will emerge along the journey.