Are you spending within your means? costs vs high income
On 12th March 2010, Alex Biribonwa attended one of our Unlock Your Potential entrepreneurs’ forums. He invited us to his business offices to advice on business growth.
He was dealing in selling wall construction materials of all types. He had a high turnover of about US $50,000 monthly. However, his cost structure was about US $36,000 excluding the factory rental costs which he often paid 12 months in advance. His business, although with high turnover, was not increasing his net worth.
He was just surviving with no clear strategy to turning the business around.
Write this down:
High income is not developmental if none is saved and invested in other income generating assets or assets that appreciate in value overtime (capital gains assets).