I worked for a man for almost a decade, who was one of the cheapest operators I ever met. There was no corner he was not willing to cut, as long as it did not directly impact the customer experience. The business he ran was insanely profitable. I learned a lot from this person, whom I still think of fondly as “the cheapskate entrepreneur”.
He did see the big picture, and he did value quality, safety, and reinvestment.
But he was absolutely opposed to unnecessary expenditures.
The question we have to ask ourselves as entrepreneurs is: which expenditures are necessary? My advice, based on learning from this particular mentor, is to operate your business as cheaply as you can. Manage the economics of your business tightly, maximize your profitability, and minimize your expenses.
Many think of these as basic business ideas.
Perhaps you think this post does not apply to you. Perhaps you are right.
Then again, how much did you pay for the chair you're sitting on right now? And how much did you pay for the triple-latte sitting on your desk right now?
There is honor – and wisdom – in being a cheapskate entrepreneur.
Something to think about.
Question for you: What ways do you save money in your business?