Frugality: The Cornerstone of Business Growth
Before anything, I’ll preface this: “frugality” ≠ “cheap”
There’s nothing more expensive than being cheap.
Whether we’re talking business or life, being frugal is about maximizing value and minimizing waste. And it’s something I’ve always valued, even before I started HopHR.
Where it all started:
I grew up in Iran, a country where political instability (and inflation incomprehensible to my American readers) made daily life nothing short of unpredictable.
My family was well off. My father was a distinguished surgeon. In a field there will always be a demand for, he was at the top of his game.
When you live in a nation shadowed by conflict, external sanctions, and an oppressive government, though, none of that matters. Whether you’re rich or poor, the money in your bank account is worth less and less as time passes. And access to critical goods and services becomes increasingly difficult.
Since we all had limited resources, the thing that set my family apart from many others wasn’t my father’s position. It was their ability to manage their resources wisely. They were able to save, and they were able to support themselves (and, of course, me) with limited resources.
Growing up in such a uniquely tough situation with such intelligent, nurturing parents taught me a lot about how others use money.
- Some use it to hurt others.
- Some use it to help themselves.
- And some use it to help others.
Money is a tool. Like any tool, it can either build or destroy.
When I moved to the US, I kept that lesson with me.
I’ve seen people become successful through a variety of methods. Some have done it by being ruthless and stepping on others to get ahead. Others have done it by thinking outside the box and taking risks. A few hit the lotto or bought Bitcoin in 2015.
There are infinite ways to grow a business and achieve success. When my husband and I co-founded Hop, though, we stuck to what we knew.
We didn’t grow up in a society where we had easy access to credit. And you couldn’t burn money, then raise more just as quickly. Keeping enough aside for the future was the only way we knew how to do it.
As (admittedly) challenging as it was in the US, a country where just about everything you can imagine is available at all times, we said “No” to the $5 coffees, nice dinners, and fancy things far more often than we said “Yes.”
And we kept money aside every month to invest in Hop and make it grow.
And guess what? It did.
There’s no such thing as ‘‘free’’ in business.
You’re either paying for something in money or time. This is another important concept when we consider what it means to be frugal.
Being frugal doesn’t mean avoiding spending money entirely, it means being strategic and intentional with your spending. It means weighing the costs and benefits of every decision.
For example, investing in quality employees may cost more upfront, but can ultimately save you time and money in the long run by increasing productivity and reducing turnover.
Similarly, spending a monthly fee on software to automate some of your clerical work might seem like a waste when you can do it yourself (especially if you have limited funds). But, if you can use the time and energy you save to focus on more meaningful tasks that contribute to business growth, it’s worth it 10 out of 10 times.
