Once upon a time a loser said “ Money saved is money earned!”
As per a recent study done by Forbes, One of the biggest reasons for start-ups to fail is Cash Flow. More often this happens when founders/managers/top management confuse ” Real Money ” with “Fake Money”.
I classify “Fake Money” as: (a) Sale without collection and (b) Saved Money which is also considered as revenue or “Money Earned” .
My Take # 1 : Money saved is JUST salt earned.
My Take # 2 : Money spent right & Revenue secured in account is your real worth of the company.
This is true definition of ” Real Money ” or Money Earned ” It is never about toplines or middle lines in business . The absolute bottom lines and ” Real Money “is what thrives your business.
My definition of Money Spent Right is; any money spent which generates ” Real Money” for the company is ” Money spent right” . The only thing which can fluctuate/debatable is the ROI expectation – which can be calculated as well to a realistic accuracy