What should a Startup spend more between money and time?
Money and time are the two quantities that cannot be quantified on the same balance. The more we have one, The lesser we have the other. In this competitive world where several businesses start their journey. Some of them have unique products. However, some startups have a similar idea of a product but what differentiates them from others is the business model and management of the resources. Several startups face failure and are unable to sustain. The key reason behind this is the mismanagement of the two most important resources: Time and Money.
In the initial days of a bootstrap business, time and money are crucial resources. Entrepreneurs have neither in ample. Where there is increasing competition in the market every day. For every other competing party, the available time is the same. Pushing your limit is necessary to carry forward the game. For every other competing party, the available time is the same. For every choice one makes, one should imagine different futures, the horizon time is the same.
The other way to find that is by quantifying time in terms of money. Let us say a person’s earnings are Rs. 400. He wants to have lunch. It takes him 15 minutes to go to the nearest food joint and 15 minutes to come back. Lunch costs him Rs. 150. On the other hand, if he spends 5 minutes on Swiggy, order lunch at the same price from the same place and pays delivery charges of Rs. 50.
Here, one would choose to spend that Rs. 50 extra of delivery. However, he is saving half an hour which costs him Rs. 200.
So in the first case where he’s losing Rs. 400 for an hour, he’s spending 150 for the food. Which is in total Rs. 550.
Whereas in the second scenario where he chooses time over money, He is losing Rs. 200 for half an hour, plus Rs 34 for order time, plus Rs. 200 for food and delivery. Here the sum is Rs. 434 and one should treat time as an important quantity rather than money.
Time and money are inversely proportional — the more you have of one, the less you have of the other.
This topic is more important to people who are handling multiple roles in their business. A minute spent doing one thing is a minute that cannot be spent doing anything else. For example, even though a person could do a decent job preparing her/his tax returns with the help of any web application, One should hire an accountant instead. To make sure she/he pays as little tax as legally allowed, but no less than that (and get into trouble with the IT), The person would need to spend a lot of time learning about taxes and finding a web portal. Those hours would not be available for doing his best work. As a result, though he’d save a couple of thousand bucks in accountant’s fees, he’d lose many more thousands in client work he wouldn’t be able to do in those hours.
There could be a third Scenario where you have both the quantities in ample and can spend any. Here it is advised to spend money over time and invest in something that makes you more productive. Money is a utility that, in its best form, is meant to improve our lives and minimize the hassle. One could even do nothing and just relax, or spend time with the family. Anything which makes her/him happy. Because at last, all these small factors build the environment which affects productivity.
The best way to understand this is to treat time as a limited resource even more than money. Thus, when deciding how to spend your time or your money, consider both as different sides of the same metaphorical coin. Think about the value of time in creating the money one is planning to spend, and about the value of the time, you’d be saving by spending that money. When you think about both aspects at the same time, you will likely make better financial and time-management decisions for your circumstances.