Stop spending Money your company Doesn't Have

One of the major hurdles to overcome when you want to enjoy being an entrepreneur is achieving financial independence. In simple terms, it means not having any debt and an almost certain income for the foreseeable future. It is a goal that all business owners aim to reach and succeeding involves a lot of self-discipline, determination and patience. Today I will focus on self-discipline.

You're just starting your company, or perhaps you got a new cash injection, the future looks bright! You're planning what to do with the funds and your mind, almost inevitably, encourages you to present your company better than the competition. Whilst this is normal, it can cost you a large part of your funds.

Before we delve in further I want you to remember something; the money which you have for your start up or have received from other third party sources (such as investors, loans, etc.) does not belong to your business, but is only a loan. Your company only has money when it starts selling products or services and starts making a turnover. Until then, the money in the company's account is all debt.

Keeping this in mind will help you make an important distinction; what is a necessity and what is a luxury. Here are a few examples, although they may vary depending on the business type and client base.

• Instant coffee in the office is probably a necessity, having an espresso machine that uses expensive capsules is a luxury.
• Having chairs in the reception area is a necessity, whilst having ergonomic leather sofas and a large LED television is considered a luxury for many start ups.
• Whilst providing employees with a decent area to enjoy their break time (such as a small canteen) is a necessity, having a playground of the Google headquarters type is most definitely a luxury!

By making smart choices on how to use the money you will not only help your business grow faster but also show the entity which provided you with the funds that you are responsible and can think long term.

The money you have must be invested in your business in a way that will generate or increase turnover. If your business sells goods, then consider expanding your stock variety or quantity. If you offer services then get better equipment to provide better services. And let's not forget marketing, which is also an important investment.

Having self-discipline when it comes to spending or investing money your company doesn't own can make that all important difference.

If you're Aiming for a Busy Day, then you've got the Wrong Target

It's the end of a long day, you get home and relax with a warm drink or a glass of wine. You think back at all the work you did, all the hours spent in meetings or answering emails, all the calls you took and all the documents you read through. Now ask yourself this question; did everything you did today significantly help your business grow or improve?

If the answer is no to any degree, then you need to aim your attention on being more productive. Surprisingly, to succeed you need to do less, not more. Before starting any task or agreeing to meetings, think about how what you're about to do will help you or your business do better. If you cannot think of anything, then skip the task. If you have a list of tasks choose the one which has the highest success/time ratio (meaning which task has the highest potential of success for the least expenditure of time) and start with that.

When carrying out a task remember to also consider time, location and the company you're with. Find out when and where you are most energetic and focused to carry out different tasks. For example I am most creative when I am at a quiet cafe with a view (I am in one as I write this post). Don't lock yourself in the office and force yourself to focus, your body will fight you all the way and you'll waste time.

Choose your company carefully too. Sometimes that means being alone, without distractions. Other times it means having someone with whom to bounce ideas off and get the creative process going. Other times still it means having a well groomed colleague stand by you and give you the confidence you need to close a deal with a client.

Don't worry if you suddenly find yourself with a lot of free time. You're an entrepreneur, which means your mind now has time to think of your next product, to plan your next business and to see how to have fun.

What TIME, LOCATION and COMPANY help you be more productive? Leave your comments below. 

Introductions are in order

Hi there!

My guess is that you are reading this a while after it has been posted and therefore I am talking to you from sometime in the past. Let me tell you some things about entrepreneurship in the year 2015.

Almost everyone has, at some point in their life, considering opening up their own business, probably even you have, perhaps that's why you are reading this blog right now. Entrepreneurship is not simply about opening a shop and making a profit, it is about improving the way things work, even if by a little bit. Not everyone wants to be the next Richard Branson or Donald Trump and that's ok, but every entrepreneur should seek success by improving a product or service, or make a profit by helping the envoirnment.

Entrepreneurs are business owners with a conscience and a creative mind.

At some point in the process of you being a successful entrepreneur, you will be hit by the reality of the high amount of paperwork, risk, challenges and utter nuisances that exist around you. You might be excused to think that the world seems like its ready to throw everything at you to stop you reaching your dream. BUT DON'T DESPAIR!

This blog is intended to discuss any issues that you have and hopefully to help you connect and network with other people facing the same problem so that together the problem can be solved. Just as important, this blog is also here to remind you about the fun that you should be having as an entrepreneur. If you're not having fun, you're doing it wrong.

My story is quite a long one and to try and give you the whole biography into one paragraph would be impossible to say the least. Let me just introduce myself as Sergio, co-founder of industrial automation supplier, FIN Ltd.. I am Maltese (Malta is in Europe) and am currently based on this rock. I've owned my own businesses since 2010, though the business bug has been inside of me since the very young age of 13 years when I started selling second hand computer games in the school yard.

I look forward to hearing your story, I promise to reply in kind.