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).

About M. B. Mugisa

Mustapha Barnabas Mugisa is one of those rare people who provides business consulting and advisory to professionals and corporate entities who demand the very best. He is a prolific speaker and governance (strategy and risk) expert. His speaking involves making key notes at major conferences and business events on both technical subjects and leadership skills. A change agent and motivational speaker. Mustapha provides tools and proven methodologies to remarkable results through making people appreciate change. Visit Mustapha's LinkedIn profile to know more. Mustapha is the architect of #WinningMindset Leadership and #WinningTheGame strategy approach that combines Harvard Business strategy Playing To Win, with the Blue Ocean Strategy and Balanced Score Card to deliver a strategy that is easy to execute and monitor. Visit www.mustaphamugisa.com for special insights to improve your condition. Are you too good to be great?

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