“You should trade for business, not personal use”
The reason most people are in business is to provide a living for themselves and their families as well as to enrich their personal lives. Income earned from the business may be spent as the owner sees fit. This may mean buying more inventory, improving the shop, more advertising and so on. The options are many and vary from time to time.
Let’s take a look at the real world. When the businessperson sells his product, does he allocate the income from the sale to a specific item?
“I guess I will buy envelops with this money”.
Does he set aside the income from the next sale for shoes for his son?
Obviously, no. All of the income goes into his account which he takes out to buy goods and services that he needs for his business and for his personal life. He makes the decisions on purchases whether they are business or personal. This means that he must establish priorities but taking care of his personal business must be high on the list.
If he cannot provide for himself as well as the business, he won’t last long.
The most important reason of all for being in business is so the owner can make a living. This means that he takes some of his earnings to acquire goods or services for his personal use. Every business in the country operates on the same principal.
“Learn from the mistakes of others. You can’t live long enough to make them all yourself.”
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