15 December, 2013

1-5-3 finance: Sufficiency

Simple enough and a common sense term:

If your business is not capable of bringing in enough money to keep going + extra profit that SATISFIES you, it is not sufficient YET

Some notes here:

-           That what determines every successful business. A business that can't pay pills & make it worth for you is not "successful"  yet
-          What is "enough" is a subjective decision. If you are making 3 million dollars and that doesn’t satisfy you then you are not successful yet

Once you have launched your business, it would be a struggle on every level till you reach that "sufficiency point". You cut down costs and expenditures till u reach the "breakeven point" first:

The point where your business stops sucking money from you and just every Penney you spend on it is coming from the business itself

Then you reach that "sufficiency point" where you make enough profit for you to live

And then, you will be standing in a very comforting zone knowing that everything you make from now on will just make everything better