The Valley of disappointment.😞

[Cold Sun]

There is a book, the start up J-Curve by Howard Love, that is recommended reading for every businessman or anyone going into business.
In the book, the author likens the path from startup to success using a J-Curve.
On start up, most businesses go into The Valley of death according to the author -The downward swoop of the J-curve, where revenues, if any, are eaten up by start up costs and is where most businesses flounder and die.That's why I call it the valley of disappointment but now you know the truth.
One reason many businesses die here is because their model has been shown to work, they are off investing in other things, which prove a constant drain on the much needed resources, giving the initial enterprise no chance to survive.
When the business hits break-even on the other end of the curve opposite the beginning of the J, it is assumed the business model is workable and the businessman starts more than covering his costs, he is profitable and cash starts to flow.
Therefore, it is critical as a business that you recognise this point to prevent you from making questionable investment decisions before it.
Now just imagine the relief of surviving the valley of death and the excitement of the money flowing in does a lot of damage to the businessmen's brain. Because it is at this point that they start investing in questionable endeavours that soon lead to the company's demise.
Billionaire Warren Buffet advises that you need not only know your core competence, but even more important, the limits of that competence.

[walaoeh]

@Cold-Sun Easier said than done I agree to a certain extent. We need to adopt a good financial mindset but I think it's best to figure out things for ourselves. Everyone is different in the learning curve of..... getting rich (??)

[Cold Sun]

@kaia_ Now that's what makes some entrepreneurs successful and others fruitless. As business people, we are bound to encounter challenges and difficulties but never use those challenges as an excuse to dabble into every seeming opportunity.
Overcoming these requires hard work and persistence, one of the keys when it comes to business sustainability.
Personally, I enjoy myself a lot but derive more joy in working coz I believe in hard work which is one of every successful businessman's secrets.
For every investment, there are more things to worry about in the initial stages of building the business and financing is in the top most list of priorities as its one of the strongest factors for a successful investment.

[Cold Sun]

Dosh is later followed by other resources and capabilities of the business to succeed against competition. Sincerely texting, business is so interesting if you know where and how you've positioned yourself and which sectors you have started your business madam.

[walaoeh]

@Cold-Sun Thank you for making me see your lessons in such uderstandable way, sir.. It feels so unique lessons yet so relatable, close to reality and truth. These principles are what every person do, learn from mistakes and grow. Gives me driving force towards action. The vision is mine to foster, to hold on to, and to start taking action on. Hopefully I get more lucky than others.