Developing a smart personal finance plan is the first entrepreneurial act. It should roughly look like this: “we spend WAY less than we make.” My transition from worker to entrepreneur coincided with an aggressive debt reduction plan and bold new spending habits (including a cash based spending plan ). I found Dave Ramsey’s resources to be extraordinarily useful. Ian likes this blog.
Your basic goal is to stop spending money. For every hundred dollars you spend on bullshit or retail therapy, the business gods shed a tear. Read Felix Denis and Mark Cuban on the topic. Take your money out of the market and put it in a savings account. Don’t listen to your friends who say otherwise. Get rid of your credit cards. I don’t care how many points they earn you.
Stop taking loans. Get rid of the ones you do have.
Finally, write down exactly how much money you want to be making (after expenses). Start thinking about how many units you need to sell to get there.
Congratulations, you are an entrepreneur now.
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