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I know the article title might seem irritating, why should one be teaching people on how to spend? Right or wrong spending, the needed thing is; ‘have that mentality that expenses are very necessary’, the later is your decision. There are shells you will have to grow out of. Anyway, we have to admit that one of the worst shrinking in shells is a mental shell. In the absence of an expandable mentality, one gets locked into many flaws.
I have had some experiences over the years, there were times I was trying to curtail and curtail so I could avoid some expenses. In business, this can be a setback. We have to admit that business is a transaction of a set time. We are in a competitive market and strategy is a key to scale. The big problem within the sector of service and products has been delays.
Talking of delay, most of it has been within the Small and Medium Scale entrepreneurs and well, the glitch in-between is poor payments. I have had several of such discussion and we have faced such, mostly in our early days of businessing. This is where overdependence on general electricity becomes the norm.
It is something not to kick against anyway if the government would love to look into the issue on affordable energy for citizens.
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When the reverse is the case, you have to learn spending the smart way. What is that rule of business?; ‘customers pay for services’. Maybe you will have to learn this particular character from traditional banks. I could remember during that Covid-19 time that even the hand sanitizers was charged from our accounts so anyone who never went to the bank during that time was more of a donor.
Come back to the main point of focus, I have had to erase that dependent mentality which has been dulling business. The solution here is to strategize with expenses included. Of course, service prices will have to step up in the process. So what has been the end result so far? We deliver on time than before. A customer came yesterday and happily gave us his service balance although his first complaints was that our service price was high.
I have seen that quality and timely service works. It is something I was discussing with my contract worker, one of the flaws I am seeing in his method of delivery is the fact that he is so much dependent on general electricity to pull out a service. I told him the need to liaise with our brand and pull out both quality and on time service.
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It is still not easy for him to understand that and well, what I am planning is to teach him practically. Sorry if this may seem harsh but I am planning on taking a percentage of his daily pay and putting it into expenses to help him deliver faster. I guess when he gets used to the need to spend, his entire mentality will reshape. As I earlier said, I was once there and it took me some time to be able to break out. We deploy greed in so many things and in the end, we get hooked up.
To conclude, let me add, professional business cannot exempt expenses. This is where many SME entrepreneurs miss it. I have made some earlier explanations concerning the later acts. Nevertheless, the best solution is to step up your standards of operations and that includes pricing. Don't run from expenses but rather, calculate how to stay in profit with expenses inclusive.
This is an article covered by dani-EL; a broad niche writer. I write on faith, life facts and daily living, business and economics, small scale and daily businessing, cryptocurrency and technology. And yes, I do cover articles on financial education and investment updates. And note, if I happen to be a financial adviser to you, the TOP financial advice should be ‘DYOR’ (Do Your Own Research), I can't afford to break your heart