WATCH YOUR SPEND!

When you’re just starting out in business, it’s so tempting to spend. You don’t always think about the skeleton of your business finances—you focus on what looks attractive on the surface.

But that’s where many new entrepreneurs fall into traps.

The Temptation to Overspend

If you start a business with money already available, you might be quick to splash out on things that don’t really move the needle:

• Extravagant marketing and advertising campaigns
• Hiring staff you don’t truly need yet
• Premature or luxury office space
• Fancy equipment you could easily do without

 

And if you start with nothing? The first thing you want to do when money comes in is celebrate. That big dinner in a five-star hotel. That “I deserve this” shopping spree. Or even a full-blown party for just one sale. But here’s the question: how many parties can you afford if you celebrate each small milestone instead of focusing on building consistency?

Instead of splurging, ask yourself: How did I get that sale? What’s the process? Can I replicate it to get more? Document the wins. Learn from them. That’s worth more than a champagne night out.

The “Show Them” Mindset

Then there’s the other temptation: proving a point to people who don’t even pay your bills.

• Buying a brand-new luxury car to “look successful”
• Leasing office space long before you need it, just to show off
• Plastering expensive billboards everywhere instead of using cost-effective alternatives
• Dressing like a millionaire when your cashflow doesn’t match the look

Yes, you want to appear professional. Yes, your image matters. But stay within your lane. Growth is a process, not an outfit.

The Smart Money Check

When your business starts making money, here’s the real order of priorities:

1. How much have you spent vs. how much have you made?

2. From what you’ve made, what expenses still need to be covered (rent, wages, stock, etc.)?

3. From what’s left, what should be reinvested into scaling and growth (like targeted marketing)?

4. How much needs to be saved for stability and future expansion?

5. Only after all that—what’s left for you to keep?

 

The Bottom Line

They’ll tell you, “It takes money to make money.” That’s true. But it should never take more money just to make a little money.

Your number one financial focus as a startup isn’t revenue—it’s cashflow.

Cashflow shows you how your business actually operates day-to-day, not just the flashy outcome before expenses are deducted. The money moving in and out of your business tells the real story.

So, watch your spend. Protect your cashflow. Build wisely.