No such thing as a free lunch

Cheeseburger With Lettuce, Tomato and Onion free creative commonsI’ve written a few posts about minimizing expenses and assets. This is not to say that you can or should build a business out of thin air. You can’t do that. If it were possible, then everyone would be doing it, and we would all be rich.

To build a successful business, you must invest something, whether money (financial equity), hard work (sweat equity), or both.

Amazon or eBay might have built successful businesses with little or no physical assets, but their founders invested many hours into modeling, programming and experimenting with them.

Do the same with your own business. Don’t waste money on useless assets, nor on unnecessary expenses. Don’t waste your time doing unimportant things. Spend your money and time where it will do the most good.

The Pareto Principle says that about 20% of our cause leads to 80% of our effect. Hence, the other 80% of our cause is almost wasted. Focus on the 20% of your expenses that make a real difference, and focus on the 20% of your time that will truly help you meet your goals.

About Mark P. Holtzman

Chair of Accounting Department at Seton Hall University. PhD from The University of Texas at Austin. Worked at Deloitte's New York Office. BSBA from Hofstra University.

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