Economy

Economy – An Important Core Value

How important is economy to you as a self-motivated entrepreneur seeking success?

Economy is the thrifty management of, or frugality in the expenditure or consumption of money, materials, etc.

Your answer to my question may depend on where in the entrepreneurship venture you are, and how much capital and/or cash flow you have.

If starting out, it is ideal for you to have enough capital (savings) to last six months. However, this is not always possible. You may have woken up one day and had an entrepreneurship seizure*, and quite your safe job without considering how much it will cost you to start up, and survive. Or you could have unexpectedly lost your job, and decided to set up in business rather than go and find another one.

In these two scenarios, you may not have planned to go into business, and therefore not have enough savings (capital) to start up, or any income to support you through the first few months. If this is you, then economy will be a very important core value.

Even if you have capital saved, and income to cover your expenses, you may still need to have thrifty management of your money. Any economy will have its ups and downs, and yours will be no different. When money is flowing, the importance of economy as a core value may decrease slightly, but it should never disappear completely.

It is also important to be thrifty with your time. Economy in this area will help you to have billable hours for your services, to create recurring income producing offerings sooner rather than later, and not give away too much of your expertise and intellectual property.

The biggest mistake entrepreneurs make when starting out is they give too much away in the hope it will build their credibility. This usually does the opposite, as it positions them at the low end of the market, and the economic return will reflect this. This is bad economy management, as you will not make enough money to meet your expenses, let alone grow your business.

Even if you feel economy is not a very important core value to you, it may be worth keeping track of your expenditure and consumption of your money and time, and learning how to thrifty with both.


*An entrepreneurship seizure is when you decide you would be better off being your own boss, rather than work for someone else. I first read about this term in Michael E. Gerber’s book, The E-Myth Revisited.

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