are you overvaluing cash?

In building a business, learning by Jay Clouse

One of the biggest traps I fall into as both a solopreneur and operator is hoarding my cash like a squirrel saving its nuts for winter.

When I’m worried about cash flow, it’s easy to get into a scarcity mindset and do everything I can to protect what I have.

And that usually comes with trying to do everything myself so that I don’t need to hire or outsource any work (because that would cost money!)

But the hidden cost in this equation is that of my time. I routinely spend extra time doing things so I don’t have to spend actual cash, and I don’t feel the pain of opportunity cost.

It’s like spending two hours researching a product to save $5 or $10. Is your time worth $2.50-5 per hour? Doesn’t break down to be much of a cost saving, does it?

I routinely overvalue cash and undervalue my time. My time could be used creating a productive asset or sold to someone else. And as a very small team/operation, that’s a very costly mistake.

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