Frugality is highly important when building a startup.
Frugality does not mean cheap.
Being cheap means that one is cutting corners to save money in the short-term without thinking about the long-term.
On the other side, frugal entrepreneurial leaders want to maximise the use of available resources.
Being frugal sometimes even means to spend more in the short-term to make sure that one is better off in the long-term.
Deliver maximum value while spending as little as possible.
In the beginning, get rid of the idea to rent a fancy office.
You can use services such as AndCo and meet with your co-founders and team members at bars and cafes to save office costs.
You should always squeeze the last drop out of every Dollar, Euro, or Pound, no matter how many you have of them.
Also get rid of expensive marketing materials such as branded clothes.
Focus on cash flow, not on impressing people.
Even if your cash flow is high, you should not overpay for everything.
Sometimes, when founders succeed beyond their initial expectations, they tend to become less frugal and stop getting the most value for their purchases.
Whatever you do, think about whether you just want something or whether you really need it.
If you just want something, say no.
If you really need something, get it.
It is that simple.
Thinking this way will reduce your startup costs to a bare minimum.
It will free up resources that you can spend on things that have an actual impact on your personal and professional development.
Such as an online programme that gets you to your goals much faster than you could ever hope to on your own.
More often than not, spend money only when it leads to a return on investment, whether tangible or intangible.
I hope this article made you raise awareness about the importance of frugality.
To your success,