Most time entrepreneurs need to be prudent with business spending. I guessed most times we want to manage our business more like a business, and less like a household budget.”
What do we mean?
If you think about managing a household budget, you have to match your expenses with your income. And hopefully, there is something extra at the end of every month to save and splurge on something special. While the budget can create pressure and tension, the math and process are relatively simple.
Many entrepreneurs’ choose to manage their businesses like their household budgets. They spend as they can afford to, and are reluctant to consider or make any investments that don’t meet their monthly cash flow.
“If I can’t afford it, I can’t do it – or I have to wait until I can.”
This is one approach to managing and building a business. There is nothing wrong with it, and you can be successful. It is conservative and valid.