Success Can Cause Sloppiness

Of course this is a problem we’d all like to have, but I have seen some people do well enough that it can cause them to get sloppy. This is most likely to happen when you make enough money that you don’t feel the pain of being sloppy with other things. For example, letting your cost of goods sold, payroll, or other expenses get out of control is obviously the last thing any business owner wants. But if you’re making enough money that it doesn’t hurt when your payroll is too high or other expenses are out of line, you may not feel the pain because you’re making enough to cover it, at least for now. This is another issue that can be just as true in personal finance as in business finance.

It’s important that no matter how well you’re doing, you act like it’s still tough. Pay attention to the important things, keep things under control, and be intentional with your spending. Make sure that as you scale your business, cost of goods sold, payroll, etc. still stay appropriate for your industry and your business. The extra profitability can fuel healthier growth, upgrades, etc.