I don't agree
Jul 14, 2011
5:09 PM EST
|I don’t agree with this “the devil always wins” idea, and think things are a little more complicated than that.
The problem is that businesses, unfortunately, are not usually run like individuals run their own finances. If MS comes offering bundles of money, this is actually a golden opportunity to help separate them from some of their cash, and put it to a better cause. The problem is, you cannot become addicted, as this article warns. If you hire more people, and create a larger budget that takes this pile of cash into account, THEN you have become addicted, and are now beholden to them, because as soon as they pull that funding, you’re done for.
The answer is very simple: don’t do that! Do not count that funding as part of your regular budget; instead, count it as a bonus, and put it in the bank. Save it to either pay capital (one-time) expenses, like new equipment, or as a buffer in case of any future revenue problems. Absolutely DO NOT spend it on recurring expenses, such as payroll. If you don’t have the discipline to do that, then maybe you shouldn’t be in business, and should get a job as a barista and let someone else manage money for you.
Of course, most publicly-traded companies these days don’t save much money, but this doesn’t mean it can’t or shouldn’t be done. In fact, MS themselves is famous for having a giant horde of cash, instead of giving it all back to stockholders as dividends.
Deals with “the devil” are fine as long as you’re smart and disciplined enough to manage them properly. Don’t be like these stupid sports stars who get a $4 million/year contract and then start spending it recklessly, thinking they’re always going to get that much money, when in reality their career is about 4-6 years long until they get an injury and then the gravy train is over.
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