Frugality at its Best
“He’s not just frugal. He’s frickin’-frugal.” – Rose Nylund, Golden Girls
The above is one of the many funny quotes from the 1980s sitcom, Golden Girls. It’s used in a light-hearted manner, to simultaneously poke fun at Rose’s Scandinavian background and her boyfriend Miles’ penny-pinching tendencies, but it also brings up the point that frugality is often viewed in a harsh light.
The word frugal can conjure up images of a tight-wad or a cheapskate who wants to spend as little money as possible, often resulting in the purchase of sub-par products and/or services. But in reality, as a business owner, being frugal is a valuable characteristic.
Frugality does not just consist of spending the least amount of money whenever possible. A savvy business owner has an ultimate goal of producing the greatest profit possible, and sometimes that might initially take more money, but will allow for a greater profit in the end.
Getting a business loan through a bank is usually a business owner’s first choice for business financing. And in a perfect world, a small business owner would walk into the bank with a smile and a request, and walk out with a check for the exact amount of money she needs for her small business. But snap back into reality, and you’ll realize that many small business owners simply do not qualify for a small business loan, and as banks have tightened their lending practices, landing a business loan through a bank has only become more and more difficult.
Some small business owners shy away from merchant cash advances in attempt to save money, without looking at the bigger picture. So consider the following question. Who would you rather be; the business owner who didn’t qualify for a bank loan, and chose to not get any financing for his business, saw no growth and eventually had to close his business due to a lack of financing, or the business owner who sought a merchant cash advance, a less-traditional method of business financing, but made it work for her business and saw growth and expansion as a result? The decision is up to you.
*Are you a frugal business owner? Use the following links to find ways to save money on all aspects of your business, without settling for less.
Top 10 Frugal Ways to Market Your Small Business
50 Ways to Save Money in Your Business
