Do you
suffer from Porsche Syndrome?
My
friend Ruth King sees this a lot.
She
advises business owners on profitability.
Too
many think they can spend and spend.
They
really should run for Congress.
That’s
where you spend other people’s money.
Just
because you have cash, don’t waste it.
She
knows several of these business owners.
One
lost out on a loan due to Porsche Syndrome.
He
bragged about his $2,200 monthly Porsche lease.
His
business was footing an extravagant lifestyle.
His
investor was not going to loan money for that.
He
invested in businesses to help them grow.
And
he expected to be paid back with interest.
He
wasn’t going to invest the “finer things of life.”
Some
owners use their businesses to buy boats.
Or
to buy expensive homes and cars.
To
write off expensive vacations and resort visits.
They
put non-working relatives on the payroll.
They
don’t invest in their businesses.
They
invest in themselves and their lifestyles.
How
stupid can you get?
Ruth
King says enjoy the fruits of your labor.
Just
don’t do it at the expense of your business.
Save
your cash for downturns. They will come.
Save
for rainy days. You’ll have your share of them.
How
do you avoid the Porsche Syndrome?
Make
sure you generate reasonable profit margins.
You
can actually save relatively painlessly.
For
example, save 1% of every check that comes in.
If
your deposits total $10,000, put $100 into savings.
You’ll
never miss the $100.
And,
that $100 will start earning interest.
Here
are three questions for you.
1.
How many business expenses can you avoid?
2.
How much of the savings can you escrow?
3.
Where can you get the best interest rates?
Next:
Creativity in business.
Jerry
Bellune's family owns and operates book and newspaper publishing
companies in Lexington. He leads Master Mind groups for business
owners. For details, contact him at JerryBellune@yahoo.com
