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The Personal MBA

Master the Art of Business

2nd Edition, Revised & Expanded

This is a preview of a key idea from The Personal MBA: Master the Art of Business by Josh Kaufman. Order your copy now...

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 Ideas:

• 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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