In My Own Words: Amobi Okugo – Controlling My Burn Rate….as an Entrepreneur
As an athlete, one of the biggest problems you will face is controlling your burn rate. Understanding how long your money last and balancing your expenses compared to your income is tough for the average professional athlete. As an athlete, you can ultimately control your burn rate simply by being disciplined and cutting down on unnecessary spending. I wrote about it on a frugal athlete…
Controlling your burn rate as an entrepreneur however is a much different battle. Ironically it wasn’t until I spoke with El Johnson about possibly writing a similar article about burn rate as an entrepreneur that I realized how hard it is. I remember when I first started Frugal Athlete, I was literally all over the place and had no specific strategy or business plan. I was spending money without knowing what I wanted the money to accomplish. Whether it was to redesign the website, make another logo, learn some tool that promised to make it easier to run a business, get merch, or figure out the complex algorithms to grow my social media channels. I understand why so many business fail early. Having a structure and plan is vital for one to be successful. It wasn’t until I changed my approach where I started seeing the results that I am now. By simply allocating funds and strategically spending money accordingly and giving purpose for each dollar, I’ve seen my company grow tremendously. If I want to spend on Facebook ads, I know how much I’m spending and which demographic I want to reach.
It’s hard to be disciplined because you want to grow your company as quickly as possible. You have to have a certain amount of followers and hit your profit margins. Like the saying goes, “Gotta spend money to make money.” However the best way to do that, is making sure you have a plan and the funds to support your company. All those overnight success stories you hear about, really took longer than you think. Once I understood that and changed my strategy I was able to control my burn rate and ultimately become a little bit more successful controlling my burn rate.