Invest Like a King

Whether it is self-owned capital or that infused into the business by investors, all decisions and pay-outs must only be undertaken keeping the interest of the business in mind. Highest level of discipline must be demonstrated while managing money, especially when it comes to incurring fixed costs, salary pay-outs and, above all, the entrepreneur’s own drawings from the company.

Investors respect the need for an entrepreneur to receive monthly salary, as everyone has bills to pay. But the amount always has to be in proportion to the stage of the business and revenues being generated so that it does not become a burden on the business itself.

Consuming capital for salary pay-outs to themselves is one of the most common blunders that entrepreneurs make and has always proved to be the Achilles heel of their business. That said, the ability to take measured risk and invest money into building the business itself is essential and the key to creating a successful enterprise.

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