Many entrepreneurs face the challenge of starting a business with limited capital and no external funding. This can limit the growth potential of the business, as it cannot compete with larger and better-funded companies. However, this also means that the entrepreneur has to be resourceful and efficient with their small capital and learn how to make the most of it. For example, they might have to choose the best quality products or services for their customers or find creative ways to market their business.
But what happens when the business finally succeeds and generates a large capital? This can be a problem for some entrepreneurs, who are used to operating with a small budget and do not know how to invest their increased capital wisely. They might end up wasting money on unnecessary or low-quality products or services, or lose focus on their core competencies. This is like giving a child $10 to buy candy and then giving them $1,000 after a while. The child will likely buy more candy than they need or want, and end up throwing away most of it.
How can entrepreneurs avoid this problem? One way is to have a clear vision and strategy for their business and stick to it even when they have more money. They should also seek professional advice from experts or mentors, who can help them make smart decisions about how to use their capital effectively. They should also keep track of their expenses and revenues, and monitor their return on investment. Finally, they should remember their original mission and values, and not lose sight of why they started their business in the first place.
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