So, how is your new UK small business doing? Is it earning? If you’ve just started, probably not yet. Even then, there’s one huge lesson you can learn from someone I know. Let me tell you the story of Ben*.
Last September, Ben’s small business made its first £10,000.
Upon checking his bank account, Ben was so delighted! Never before has he had this much money. Being the good law-abiding citizen Ben is, he first paid off his bills, mortgage, taxes, and all that.
Afterwards, he realised that he still had £6,000 left. Looks like a really early Christmas for Ben.
He then mentally ran through the things he wanted to buy.
Ben thought of the many stuff he could have right away. First off, an iPhone X. Ben always has this habit of getting the latest iPhone. So he bought an iPhone X.
Next, Ben bought a new 55-inch Smart TV. He was getting tired of his old 32′ LED TV, so he upgraded. And of course, what’s a TV without a nice spacious couch, right? That’s exactly what Ben bought next.
Ben is also fond of video games. So, he bought a PS4 Pro as well, plus five games that he wanted to play so badly.
Ben also likes to cycle, and he thought a new bike was in order. So he bought himself a new mountain bike, as well as a new helmet and cycling wear.
To cut the long story short, Ben bought everything on the list of things he wanted to buy.
A month later, Ben was wondering why his business isn’t doing too well.
Sales have dipped, and his profits have shrunk. Ben was desperate to figure out how that all happened. After careful investigation, he realised nothing was wrong with the business. Everyone was performing as expected, there were no internal problems, and there was a steady stream of customers every day. He could not, for the life of him, figure out what went wrong.
Clearly, Ben was missing something that happened last September. I’m sure you can guess what it is. That’s right, it’s all the stuff he’s bought. Now, if you’re wondering what that has to do with anything, this is why.
Ben could have reinvested that money back into the business.
If he did, his business would have grown. His sales would have increased. And in turn, his profits this month could have been much higher.
But instead, Ben acted on impulse. He spent the money on things that would not bring additional value to his UK small business. Think about it: all the stuff he bought were for his home, for his own personal use. None of it were for his business.
Moral of the story: While it’s early, skip the luxury.
Your UK small business is still as it is – small. In fact, it may have just started. Knowing that, this is the proper mindset.
Once you get those sweet profits, focus on growing the business rather than acquiring things for yourself. When your business grows, your profits grow. When you treat business this way, before you know it you’ll have more than enough money to get the things you want in life.
Remember the concept of delayed gratification, and hold on to it.
* – Not his real name
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