Friday, February 24, 2012
Overly focused on costs
In the book "The One Minute Entrepreneur" by Ken Blanchard, there is an important concept that apply's to business but also to personal finance. "If you focus only on managing costs, your business will never grow." I think I have been guilty of being overly focused on costs. It has been explained this way. Family finances are divided by offense (generating and raising income) and defense (cutting costs). By only thinking about trimming, cutting, and doing without, it results in a scarcity mentality. As if what we have is all that we will have so eliminate all unnecessary things for survival and just work to make it. It is much better to think about better ways to serve, opening a business, and being a great employee because that is focusing on growth and increasing revenue. For some reason, I have been trained to think of what something costs and making my judgement there. I instead need to think about possibilities and how things can be done and accomplished. I need to make things happen. It is a balance of fear verses faith.