To become successful in business, you must solve two problems:
- How do I get capital?
- How do I allocate capital?
Your business success will depend on how you answer those two questions. If you have a large income but you spend it all on stupid things, you’ll fail. And if you have no income but many ideas on how to invest money, you’ll fail too. Only if you create a sustainable cash flow and allocate these cash flows in a profitable way, you’ll reach high levels of business success.
The following video provides more considerations on this critical topic for any freelance developer:
Play with your own numbers using the Google spreadsheet from the video here:
Do you want to create your own business? Feel free to learn more about freelancing here: