Sufficiency

This is a preview of a concept contained in The Personal MBA by Josh Kaufman, a book that will help you master the fundamentals of business, hone your business instincts, and save a fortune in tuition. The Personal MBA distills the most powerful principles of business and delivers them quickly and concisely. Order your copy now…

What is “Sufficiency”?

“Know contentment and you will suffer no disgrace; know when to stop and you will meet with no danger. You can then endure.” — Lao Tzu, ancient Chinese philosopher

Key Points:

• Sufficiency is the point where a business is bringing enough profit that people find it worthwhile to keep going for the foreseeable future. Maximizing profits is not everything, it’s more important what you do with it.
• On the other hand, you can’t create value if you can’t pay the bills.
• Refer to your TMR: Target Monthly Revenue. If you bring more than your TMR each month, you are sufficient.
• Sufficiency is subjective. Different businesses have different sufficiency points.
• If you reach Sufficiency, you are successful, regardless of how much money you make.

Questions for Consideration:

• What is your point of financial sufficiency? Have you reached it yet?
• How could you reduce the time it’d take to be sufficient?

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