One of the reasons why most businesses die in five years is because of management.most people have problems with managing money even before they go into business, and most of these problems are personal problems. If you don’t know how to manage the money it would be very difficult for you to manage your business. When you tell people to learn financial literacy they will tell you they don’t need it, money management doesn’t have to do with the money you have, it also has everything to do with the money you are earning from your business.
Most businesses die because of poor management and our people misuse their money. You can be earning a lot of money from your business but if the money is not used properly on the business, the business might fold up in no time. one popular mistake people make is diverting the money that they are earning from their business into their personal lives. People are always sucking the profit out of their businesses without investing any money back into the business to make it better than what it was.
They take out profit instead of paying themselves
Most people just take out profit from their business to pay for liabilities and the more money they get from the business the more abilities they acquire, and the more money they need to maintain liabilities. Don’t get me wrong, I’m not saying that when you are earning or making money from your business, you should not spend some of this money on yourself because the goal at the end of the day is to be financially free, but there is a difference between what you can afford and what you can buy.

Just because your business starts making you a lot of money that doesn’t mean Immediately you can afford to take money out of the business, it doesn’t mean you can’t also take money out of that business. You just have to pay yourself a salary in such a way that it will not affect the business development, but this is where most people get it wrong. They don’t consider this, most people start up businesses just to be financially free overnight.
It takes time
You have to ensure you don’t overspend your earnings and develop your business little by little. Your business needs to grow, It is essential to consider all these things the more time you are able to manage and grow your business the more money you will make, and the more money you can pay yourself in the process. We must not rush into making ourselves comfortable or living large m, it kills our business. All of this takes time to get where your business will give you money to buy everything you dreamed of.
Thanks for your time.
