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The Frugal Entrepreneur

Written by Monika Mundell  · July 2, 2008

frugal entrepreneur Entrepreneurs come in all sizes and shapes. They approach their business with a goal, something that works for them and while some manage to work to a strict schedule, others explore and learn along the way. The frugal entrepreneur however has one thing in mind.

His main objection is to run his business frugally to ensure faster success. But what exactly does this mean?

Wikipedia says frugality in philosophy can have several meanings. For starters, it could be considered a virtue, or a spiritual discipline by some cultures or even environmentalists, while others see frugal living as a result of mistrust.

In business, frugality equals the usage of available resources and making them last longer. Entrepreneurs, especially young ones need all help they can get in the beginning stages of their business. What better way to become pro-active and choose the do-it-yourself approach.

While I was thinking about this concept, I wondered whether business frugality can indeed help us attain success faster or not? Join me on my mind trip to see what conclusions I have reached.

Being an entrepreneur myself I can only look at this from my own perspective. While this might be similar to some of you, others might not agree with my views, which is fine. I think we have to do what is right for us, regardless of ideas, options or desire.

My journey to business frugality

When I first started out online I was a total greenhorn. I think it’s safe to say this. Since I was born in the flowering 60s, I never learned how to use a computer at school, let alone did I realize there was an Internet available to me in the 90s. To say I’m a late starter is quite accurate.

So in some ways I can be forgiven to be blinded by this massive online world and all the opportunities that lie at my finger tips when I finally saw the bigger picture.

To be honest, while everything seemed rather exciting it soon became massive overload. And after soaking up everything I learned, saw and heard on the net I soon found myself burnt out, close to financial melt down and disheartened with my lack of advancement.

Spending myself out of pocket

The major problem for me was my desire to know everything. I soon realized that it is impossible. On my quest to find online riches I bought every dozens of eBooks, courses, plus memberships. Every time I did I felt a little closer to my goal which of course I so wasn’t.

In reality I was kidding myself while spending my hard earned money on a lot of useless stuff. Then when I failed my MLM business I had no other options than to either go back to a job I hated (which I did for about 7 months) or get really serious and make it happen.

The dawn of frugality

That moment was the beginning of my business frugality. I stopped buying into every new product launch. I also stopped buying into all the hype I saw online.

I started to knuckle down, look very hard at what I REALLY wanted from a home business and went about doing it, step by step.

My frugal mind helped me since I went from spending between $2000- $3000/month to spending about $150 for my business costs. Mind you, the massive difference was mainly due to me quitting my MLM business. Company tools, events, lead management systems and phone bills kept those expenses astronomically high.

When I look back now I’m still shocked at having spend so much of our savings. Despite this shock, I also know that if it wasn’t for my MLM business I wouldn’t be doing what I do now. You could say I made peace with myself and learned from my mistakes along the way. Was it costly? Hell yes it was as you can see quite easily. But I’m thankful I made the switch when I did, otherwise I might be living in a rented house rather than my own today.

On being frugal

In short, my decision to become business frugal has meant the difference between my business success and my earlier failure. Maybe I needed to be learning this very hard lesson in order to become 100% dedicated and serious. In retrospect, I probably did.

From where I stand, it certainly does help to have a frugal mind as an entrepreneur. There is no room for wastage and much error as every single one will cost us dearly.

Does this make sense to you too? Do you employ a frugal mind set in your business or couldn’t you care less about this? Let us know please.

About The Author
My name is Monika Mundell, I’m one of the co-authors of Can I Make Big Money Online and I’m the author of Freelance Writing. Learn more from me there.



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Comments

7 Responses to “The Frugal Entrepreneur”

  1. George Manty on July 3rd, 2008 7:40 am

    Monika,

    It is very easy for people to get caught up in information overload these days and you have given a great example of this. When you are beginner it can be good to learn the basics from information products and so forth, but then you need to focus on “DOING” and not continually get caught up looking for the next great thing. There are a lot of basic systems for making money online that work great. You just have to focus on doing them.

    Great post!

  2. Hendry Lee on July 3rd, 2008 8:35 am

    Monika,

    I believe in business system, and the best way to create it is, in my opinion, to roll up the sleeve and experience it myself. I don’t have a lot of cash to burn so having others create the system is not for me.

    My monthly cost is around $70, including three shared hosting, and one VPS (I optimize this myself so I could buy the starter package. Another $50 for unlimited Internet connection.

    Domains are about $10/year/domain and autoresponder service is $180 per year.

    Those are besides software investment I’ve made a few years ago.

  3. Monika Mundell on July 3rd, 2008 11:41 pm

    @ George: Yes, I had to learn this for sure. I tried to be at too many parties while never actually staying at the one to see how it would turn out (except in my MLM business, I worked this one for 2.5 years).

    Once I understood the need for action and focus I re-invented my work habits. It worked. But boy did I have to learn some lessons along the way.

    @ Hendry Lee: You are so right. A business system is the way to go. It does take an entrepreneurial mind to do this though. I suppose it can be learned as well but does take focus and dedication.

  4. Entrepreneur Blog on August 7th, 2008 4:53 pm

    I agree that it’s most important for an entrepreneur to be frugal, especially at the beginning of their business. There are so many people who spend thousands when they’re just starting out, and then wonder why they’re broke and earning peanuts.

  5. Monika Mundell on August 7th, 2008 8:33 pm

    @ Jason: Wise words for a young man. I just blogged about you on one of my blogs. Looking forward to the “secret”. Thank you for stopping by and comment.

    You are certainly correct with what you say. It takes a vision and a plan to succeed in any venture and frugality should be a must for new businesses.

  6. Jared on February 6th, 2011 2:26 pm

    I think sometimes it takes a hard realization (dawn of frugality) like that to really understand how much and where you should cut back to make a particular idea work. Good post.

  7. Matt Kinsella on October 27th, 2011 12:53 pm

    10+ years ago when I started my first venture I made a lot of mistakes, especially with spending too much money on things the business didn’t need. Since then I have seen how much money can be made with very little and I now pride myself on starting new ventures with the bare minimum and creating profit very early on. Being a frugal entrepreneur can be very satisfying.





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