A lot of people are making this mistake when starting a business or when starting a side hustle, this mistake can end up ruining your business.
The worst mistake is to take money out of your profits too soon. First thing you should do after making a profit is to continue investing and making more money, the secret to be successful in any business or side hustle, is to be focused on what you have at this moment and where you want to be in the next year or 5 years from now. It is also a good idea to avoid this: Fastest way to become Poor and stay Poor.
Many people fail primarily because they lack self-control and financial discipline, these are two main keys to be a successful business owner or entrepreneur, it doesn’t matter how motivated you are and how many plans you have to grow your business, if you don’t have financial discipline you will fail.
You will be excited the moment you get the first few Dollars of profit, and the temptation of spending the profit on yourself or things that are not linked to your business will be high, here is where you need to have self-control. Do not touch that money to waste it on random items that you don’t need or to buy liabilities, instead, invest it back on your business, I am telling you this because of personal experience.
I started flipping Apple computers on OfferUp as Side Hustle, on my first sale I made $100 dollars profit, I was super exited and the first thing that came to my mind was:
Ok, I invested $90 dollars buying the computer, and now I have my $90 back and on top of that I have $100 profit I can re-invest my $90 dollars to buy another computer and repeat the process, and with my $100 profit, I can buy myself the Apple Watch that I really want.
The plans sounded good to me but was not the best decision for my business, so I chose to do the right thing, instead of buying myself the Apple Watch I invested the profit into my business and bought 2 more computers, a few days later my profit had doubled, so I kept buying more computers and re-investing the profit.
4 months later, I had enough profit to finally buy my Apple Watch and a brand new computer for myself, and the best part is that my business paid for them and my “business savings” were not affected at all.
Really smart business wait years before they start taking out money.
What if you need money now?, well it is reasonable to take a portion, but you want to keep your business going and you know your limits, you can determine what’s reasonable and what’s not. If you are flipping items you should keep flipping those items, start small and little by little your business or side hustle will tell you when is the right time to invest in bigger items and end up with a successful business.
The temptation of spending the profit will be stuck in your mind during the first sales, this is normal, it will happen, but remember, if you have self-control your business will succeed. 90% of entrepreneurs fail due to lack of self-control, money is important to keep a business going, be smart and focus on your goal, it will be worth it at the end of the day.
There are many ways to start a business and side hustle, Couch flipping is one underrated side hustle that will make you good money. Very easy to start and very profitable.
