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Why I keep costs low: peace of mind, & total focus on what I truly like

The other day I was talking to a local entrepreneur who had launched a business out of Meetup social events and language exchanges.

Business was going well, but he had been badly hit by Coronavirus.
Understandably, not as many people were attending. And, of course, women being more risk-averse than men, it was mostly men who showed up -sausage fests-.

Still, before the recent new spike, there were still quite some people in attendance.
He could have at least survived until better time.

But he was worried and stressed because, you guessed it, he had high costs.

That made me reflect on my preference for keeping costs low.

These are the advantage of keeping costs low:

  • Stress-free life: nobody likes to see revenue decreasing. But what's really stressful is to see your revenues dip below your expenses, and put your lifestyle and business at risk. A bigger buffer between revenues and expenses protects not just your business, but your life satisfaction as well
  • Breeze past business crises: few businesses go always up. Eventually, chances are you'll hit a snag, or have a period of descending revenues. But if you kept your costs low, chances are that you will breeze past the downtime without having to resort to any emergency measures, which also saves you time
  • Focus on what you enjoy: when costs rise, it's probably because you are making a lot of strategic moves and investments -hiring people, sourcing writers, running ads, marketing, etc. That's cool if you like running businesses. But in my cases, I prefer focusing on study, research, explaining social dynamics, and presenting effective social and life strategies. Keeping costs low allows me to keep focusing on that part I enjoy.

 

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Stef
Have you read the forum guidelines for effective communication already?